The Shoprite Employee Trust has been established on a non-vesting, evergreen basis which will be primarily facilitated by Shoprite Checkers on a notional basis. Employees who are employed in the Republic of South Africa, of which there are currently 126,000, will benefit directly through the Shoprite Employee Trust, as unitholders in the trust, whilst non-RSA employees, of which there are currently 16,000, will receive equivalent benefits through their respective payroll.
The company said the transaction is in line with the Shoprite Group’s core values of recognising the valued role its employees play in the growth and success of the Shoprite Group. "Furthermore, the improvement of employees’ lives is an imperative, especially in the economic context of the countries in which the Shoprite Group operates. The Shoprite Employee Trust has been established on a non-vesting, evergreen basis in order to create a long-term B-BBEE shareholder in Shoprite Checkers, for the benefit of the Shoprite Group’s employees," Shoprite said.
"The transaction is intended to retain, motivate and incentivise the employees of the Shoprite Group to continue to contribute towards its success going forward. The transaction represents a material step that has been taken in strengthening the relationship between the Shoprite Group and its employees for the benefit of the Shoprite Group," it added.
The Shoprite Group anticipates the impact of the transaction on the Shoprite Group’s headline earnings to be a reduction in the region of 2.7%. This is based on the initial distribution to be paid relative to the Shoprite Group’s headline earnings from continuing operations for the 6-month period to 2 January 2022. This transaction will not have an impact on the shares in issue in Shoprite Holdings.