ArcelorMittal SA announces BBBEE deal
ArcelorMittal South Africa has announced a Broad-Based Black Economic Empowerment (BBBEE)
transaction to introduce BEE shareholding into its operations
Yesterday, ArcelorMittal South Africa announced a 26 percent BBBEE transaction with the Ayigobi
Consortium, led by Sandile Zungu, as well as an Employee Share Ownership Plan (ESOP) for more than
8,500 ArcelorMittal South Africa employees.
The aggregate transaction value is over R9 billion.
The transaction introduces new features to South Africa’s empowerment landscape and fulfils key
objectives for the company, including moving towards compliance with legislated empowerment equity
ownership requirements and positioning it for future opportunities to achieve improved self sufficiency
ArcelorMittal South Africa CEO, Nonkululeko Nyembezi-Heita, commented: “Introducing broad-based
BEE shareholders to our operations has been a priority for ArcelorMittal South Africa for some time. We
started assessing the transaction in 2008, but the global economic downturn made it impossible to
implement a suitable transaction structure at that time.
“However, as soon as the markets returned to some form of normality, we proceeded to develop this
transaction with a strong partner, which is an important step toward achieving our overall
transformation objectives. I look forward to welcoming our new partners, including more than 8,500
staff, to our business as shareholders and trust that, together, we will have a mutually beneficial
Nyembezi-Heita added: “This is a long-term strategic partnership. The Ayigobi Consortium will remain
a shareholder for up to 14 years, while the ESOP participants will benefit over a five year period”.
On a separate note, the company also revealed that it will acquire 100 percent of Imperial Crown
Trading (ICT) for R800 million to secure its supply base.
Ms Nyembezi-Heita concluded: “We feel our acquisition of ICT is a prudent decision based on strong
commercial grounds given that vertical integration is a crucial component of ArcelorMittal South
Africa’s ability to remain competitive.”