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"THIS is empowerment in its broadest sense, and hence we are proud to be part of the deal."
These were the words of the acting CEO and Chief Investment Officer of the IDC, Raisibe Morathi, at the celebration of the KWV
empowerment deal with Phetogo this week in Paarl.
"We are particularly pleased with the new structure that gives access to ownership, as well as to the envisaged participation in
management in such a world class entity as KWV by historically disadvantaged persons.
"Part of the envisaged upliftment programmes is the education and training of the employees, with a view to affording them the
opportunity to participate in strategic and operational management in the wine industry at large."
The R207 million empowerment transaction between the IDC, the SA Wine Industry Trust (Sawit), KWV Ltd and Phetogo Investments was
finalised with the transfer of 25,1% ownership of the multimillion rand entity to Phetogo Investments.
Phetogo is a broad-based empowerment grouping consisting of consortia of investors, a community foundation (8,3%) and the KWV
Employee Empowerment Trust (KEET) with 6,776%.
Co-financiers to the transaction are the IDC (via a multifaceted package), Sawit (whose soft funding package has made the
transaction feasible), and KWV Group who have provided attractive vendor finance for KEET.
Participating groups in the transaction include Phetogo Investment Holdings (19%), the Black Association of the Wine and Spirits
Industry (Bawsi 25%), EPA Development Group consisting of 21 members (9%), South African Liquor and Taverners Association (SALTA) with 5,5%, the National African Farmer's Union (NAFU) (5,5%) and Kumnandi Liquor and
Leisure Investments (9%) which represents more than 1000 tavern and shebeen owners.
* KWV has sold its 25% share of Ceres Fruit Juices to Pioneer Foods for about R100 million, to concentrate on its core business.
The sale makes Pioneer the sole owner of the juice company.
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