Bravura was mandated in 2017 by PG Group (Pty) Ltd, a leading producer, distributor and installer of automotive and building glass solutions, to advise on an optimal Broad-Based Black Ownership (“B-BBEE”) transaction structure to facilitate a 10% B-BBEE ownership transaction for the South African operations.
PG Group holds many widely recognised brands for glass products in Southern Africa. The Group has grown from a glass merchant in Cape Town in 1897, to being the only sub-Saharan African float glass manufacturer operating two float lines and exporting glass worldwide. The PG Group is committed to investing in South Africa and our people, and participates actively in social responsibility programmes. PG Group has also taken the lead in furthering black economic empowerment in the glass industry.
Prior to this deal, 10% of PG Group was held by Saint Gobain Construction Products South Africa Proprietary Limited, 38% by Remgro and 58% by The Lubner Family. The diverse nature of the company and PG’s presence in many other African jurisdictions, required specific structuring to position the company effectively for the new B-BBEE participant entry. Bravura worked closely with PG’s South African legal and tax advisors to structure the transaction to meet all the regulatory requirements.
The final structure involved a 10% stake held by the PG Group Empowerment Trust. The proceeds of the trust will benefit specific beneficiaries from education, community and entrepreneur initiatives.
Bravura is pleased to have advised PG Group on their restructuring and B-BBEE ownership transaction which has been designed to meet the principles and requirements of B-BBEE in South Africa.
Categories: B-BBEE, Transactions, News
Published: 15 April 2018