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Absa mulls new R9.6bn empowerment plan

Could constitute as much as 8% of South Africa’s third-largest lender, worth about R9.6 billion at current prices.
Image: Waldo Swiegers/Bloomberg

Absa Group is considering a new Black economic empowerment plan that could constitute as much as 8% of South Africa’s third-largest lender, worth about R9.6 billion at current prices.

The program is likely to be inclusive of both external investors and staff, the Johannesburg-based bank said in a statement on Wednesday. The terms will be announced later in the year and the plan is expected to be implemented in 2022.

South African companies are encouraged to adopt Black empowerment plans to comply with government policies to redress financial inequality stemming from the apartheid era. Absa’s existing trust owns a stake of about 1.9% in the lender.

Absa had looked at setting up a new program following the exit of former shareholder Barclays Plc, but put the matter on hold when the coronavirus pandemic started to roil markets 18 months ago.

The shares rose 1.4% in early trade in Johannesburg, extending gains for the year to 19% and valuing the bank at R121 billion.

© 2021 Bloomberg

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Good luck to those invested in SA failed state companies.

Giving “stuff” away makes it worthless. What does it take for these idiots to realize this??

ABSA is rubbish just propped up by local Reg 28 funds. Even Barclays ran for the hills.

Anyway. Good luck with the “empowerment”?

Hahahaaaa. These people!!!!

Ten years ago the share was R10 cheaper than now. So its done around 7.5% in 10 years!!!!!

TSK!!!!!

End of comments.

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