Reunert shareholders give go ahead for BEE deal
Tuesday, 6 February 2007
Reunert shareholders today passed all the ordinary and special resolutions proposed in terms of the notice of annual general meeting dated 6 December 2006. The special resolutions will be submitted to the Registrar of Companies for registration.
In particular, the necessary resolutions to give effect to the BEE transaction and employee transaction were approved. The BEE transaction will be implemented following the fulfillment of certain conditions precedent and will result in black economic empowerment parties acquiring 9,5% of Reunert. As an outflow of the BEE transaction, Ms Noluthando Dorian Orleyn will be appointed as a non-executive director of Reunert.
Reunert chairman Martin Shaw cautioned shareholders against unrealistic expectations with reference to the current buoyant state of the equity market. He referred shareholders to the prospect statement issued at Reunert’s year-end announcement in November last year.
It read as follows:
"Generally the business climate is expected to be favourable and most of the group’s businesses are likely to continue producing real growth in earnings. The consumer business may experience slower demand in a higher interest rate environment.
“Overall the group should achieve real earnings growth before the one off charge arising from the BEE transaction."
Please note the reference to real growth as opposed to much higher predictions by some market commentators, Mr Shaw said.