BLACK ECONOMIC EMPOWERMENT TRANSACTION FOR SA EAGLE
Zurich Financial Services Group (Zurich), the majority shareholder of SA Eagle has signed an agreement to sell a 10% stake of the total issued share capital of SA Eagle to Royal Bafokeng Finance (Pty) Limited, a company wholly-owned by the Royal Bafokeng Nation. In line with the Financial Sector Charter, the Black Economic Empowerment transaction highlights issues of ownership and equity in the short term insurance industry. As this is purely an equity transfer between Zurich and Royal Bafokeng Finance, local shareholding and current business operations remain unaffected.
As part of the agreement, Royal Bafokeng Finance is entitled to nominate one director to the SA Eagle Board and it has an option to increase its shareholding in line with the ownership requirements of the Financial Sector Charter. Moreover, SA Eagle has undertaken, in line with the terms of the Charter, to fund specific projects nominated by Royal Bafokeng Finance, subject to approval by the SA Eagle Board.
The transaction with Royal Bafokeng Finance underscores Zurich’s and SA Eagle’s commitment to the South African market and to Black Economic Empowerment initiatives. The broad-based nature of the transaction embraces the spirit and vision of the Financial Sector Charter. SA Eagle, Zurich and Royal Bafokeng Finance will collaborate proactively to deliver on BEE objectives as set out in the Charter.
Note:
SA Eagle is a majority-owned subsidiary of Zurich Financial Services, an insurance-based financial services provider with a global network. Zurich is headquartered in Zurich, Switzerland, and has offices in more than 50 countries. SA Eagle forms part of Zurich’s International Businesses Division, which provides a key presence in potentially high growth markets.
The Royal BafokengNation is a community of approximately 300 000 people based in the Rustenburg valley region in North West Province in South Africa. The fortunes of the Royal Bafokeng Nation have historically been closely linked to the mining industry. Royal Bafokeng Finance was established in 2004 in order to reduce its reliance on mining and to increase its participation in the national economy. The focus of Royal Bafokeng Finance is to hold the non-mining commercial assets of the Royal Bafokeng Nation that will provide meaningful diversification benefits.
