Woolworths said the transaction had created R2.4bn in value for the BEE participants and R332m in dividends had been paid out over the period of the scheme. About 88% of the 7,714 participants who benefited from the scheme had cashed out, the company said.
Woolworths said most of the current eligible employees would receive more than R200,000 each from the scheme.
"The payout will differ based on many factors, for example, the number of shares and so on. But most of the current eligible employees of the company will receive in excess of R200,000," Woolworths said.
The company said 75% of the scheme's beneficiaries worked in Woolworths stores.
Some of the employees cashing out would use the funds to finance their children's academic needs, Woolworths said.
"I am in the fortunate position that my teenage daughter is academically strong and a prefect, busy with her final year. She has chosen to study occupational therapy, which as we all know, comes at a cost," Woolworths quoted one of its store managers in the Eastern Cape as saying.
Although the deal has created value, the sell-off by employees will dilute the retailer's BEE ownership and it will have to decide whether to embark on another transaction. When the transaction was undertaken, about 10% of the company was transferred to workers.
Then the company awarded about 88.2-million convertible, redeemable, noncumulative preference shares.
Initially, the deal was aimed at empowering 17,000 participants, but some had since left the company and did not qualify.
Woolworths had also used the BEE scheme as an incentive to retain staff. The company said if an employee had resigned on or after 30 June 2010, they would benefit from the scheme.
During the tenure of the scheme, the Woolworths share price increased by almost 400%.
When the deal matured this year, the share ownership had diluted. The 88% of participants that sold out of the company now held about 20.2-million shares.
To manage the transfer of the shares efficiently, Woolworths embarked on a bookbuild process. The company said the shares had been placed at R97 per share and sold to undisclosed institutional investors.
The bookbuild price represented a 1.3% premium to the 30day volume weighted average price, Woolworths said.
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
