Padenga shareholders to vote on proposed share option schemes for management and workers

Padenga shareholders to vote on proposed share option schemes for management and workers

HARARE, April 27 (The Source) – Padenga Holdings is seeking shareholder approval to set up a share option scheme for its workers and grant options to its management, which will give the two groups an equivalent of 15 percent of the company’s issued share capital and allow it to meet indigenisation requirements.

The company’s board of directors have approved the scheme, but shareholders will vote on the proposals at an extraordinary general meeting on May 18.

“The Proposed Transactions are designed to comply with the requirements of the approved Indigenisation Implementation Plan, while enhancing the capital base of the business,” the company said in an abridged circular to shareholders on Thursday.

Zimbabwe’s Indigenisation and Empowerment Act of 2008 requires foreign owned companies valued at over $500,000 to cede 51 percent to black locals. However, President Robert Mugabe last year indicated that compliance to the policy could take several forms with emphasis being placed on local procurement and retaining earnings in Zimbabwe.

Padenga said the transaction will also help ‘incentivise and empower’ qualifying employees and management of the company.

“The Padenga Management Share Ownership Trust and the Padenga Employee Share Ownership Trust will also closely align the long term interests of employees with the Company,” said the company.

The first agreement will be with Padenga Management Share Ownership Trust, for 54,159,344 ordinary shares which represents 10 percent of the company’s current issued share capital, the circular read.

The second agreement will be with Padenga Employee Share Ownership Trust for 27,079,672 ordinary shares, representing 5 percent of the company’s current issued share capital.

The transaction is also expected to add new funds to the company upon the issue of shares under the options granted. The options have the effect of diluting the current shareholding structure, but the board is of the view that the benefits of the transaction will outweigh the dilutive aspect.

Padenga has 541,59 million shares in issue and is currently trading at 20 cents.

The circular said the option price will not be less than the highest of the 45-day volume weighted average price of the company shares as stated in the price sheet issued by the Zimbabwe Stock Exchange  immediately preceding the offer date.

Top shareholders of Padenga include ZMD Investments (Pvt) Ltd, HM Barbour (Pvt) Ltd and Stanbic nominees with 20 percent, 19,5 percent and 12,13 percent respectively.