EMPOWERMENT
Trust dumps wine BEE deal
Posted Mon, 10 Jul 2006
The SA Wine Industry Trust (Sawit) has withdrawn from a multi-million rand empowerment deal concluded by KWV over two years ago, the trust announced on Sunday.
Sawit chief executive, Charles Erasmus said the trust has revoked its loan to Phetogo Investments, which in 2004 acquired a 25.1 percent stake in KWV, South Africa's second-largest producer of wines and spirits.
According to Erasmus the R135-million loan was revoked after Sawit found Phetogo's interest groups, which include organisations representing black players in the wine industry and the company's employees, were not working together as an integrated unit.
“Transformation and empowerment within large wine organisations is of the utmost importance, provided the elements of accountability remain intact, as well as the realisation that economic effectiveness goes hand in hand with transformation,” said
Erasmus.
He said Sawit had supported the transaction to drive black economic
empowerment in KWV and to ensure the company's shareholding changed, giving the company's workers a greater say.
However, said Erasmus, the trust was "duty-bound" to ensure that its involvement with Phetogo achieved results.
The transaction was valued at over R200-million and was reported to be the first major empowerment deal in the liquor industry.
Erasmus said Sawit would assist "where possible" to find an investor to take over its financial role.
Sapa
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