Business Connexion (BCX) is restructuring its shareholding deal with BEE partner Gadlex Holdings, which will reduce its BEE shareholding from 25,01% to 20,01%. The move is not expected to change BCX's BEE ownership scorecard rating in terms of the Department of Trade & Industry (DTI) Codes of Good Practice.
The resructuring of the shareholding sees BCX replace its existing third party BEE debt funding of R77-million in Gadlex Holdings, previously guaranteed by BCX to the third party funder, by subscribing for preference shares in Gadlex Holdings as a separate transaction.
BCX will acquire Business Connexion shares from Gadlex to allow Gadlex to realise cash of R70-million, which is equivalent to a 5% shareholding in Business Connexion and will amend the existing shareholders agreement with Gadlex to ensure continuing BEE shareholding in Business Connexion for between three to five years.
The effective date of the restructuring is 7 December 2007.
In a statement, BCX explains that the restructuring replaces its R77-million third party debt.