|
In October 2002, with the eventual support of all mining houses and labour unions concerned, the Broad-Based Socio-Economic Empowerment Charter was passed by South African Cabinet. The Charter called for an initial move towards a 15% ownership goal by historically disadvantaged South Africans within five years, 40% of the same group employed in both junior and senior management positions within the same timeframe, a further move toward a 26% ownership, and finally 10% participation by women within five years. These objectives have been set with the goal of providing equitable access to the nation's vast mineral resources for all South Africans, a goal previously impossible due to the control imposed by the main large mining houses, as well as obvious historical oppression of black groups within the country. Many of these historically disadvantaged people are well qualified, skilled workers already in the field and provide a wealth of opportunity for junior companies like Diamcor to grow.
While many companies in South Africa look upon this 26% ownership requirement by a Black Economic Empowerment ("BEE") group as some sort of onerous burden, Diamcor's Management realized that it was an opportunity to gain a definite strategic advantage, if the "right" BEE group could be found. After extensive due diligence, Diamcor has entered in to an agreement with Nozala Investments (Pty) Ltd. ("Nozala").
Nozala is a broad based women's empowerment group focused on the acquisition of significant interests in listed and unlisted companies operating mainly in the resources and industrial and consumer services sectors. The company was formed in 1996 and is controlled by its founding members through Nozala Holdings Limited ("Nozala Holdings") and the Nozala Trust, established for the benefit of women from previously disadvantaged communities. Nozala also has, as its shareholders, a number of women empowerment groups which together hold a total equity interest of 26% in the company and represent more than 500,000 individuals throughout South Africa.
Nozala actively targets investments in companies operating in business areas where the involvement of an active BEE partner can add materially to shareholder value by accessing opportunities or markets not otherwise accessible to the company concerned.
Nozala has, since incorporation, established an impressive track record of investing in attractive opportunities and for actively adding value to its investments. In March 1998 Nozala was able to raise capital of approximately R143 million from various financial institutions, which included African Merchant Bank, Investec Asset Management, Sanlam, Old Mutual, PIC, ABSA and Southern Life. This capital assisted Nozala to grow its net assets to about R300 million by September 1998. This performance was achieved through focusing on value creating opportunities and by utilizing the skills and network of Nozala's directors and its broad shareholder base. These same skills and network will be used to further increase Diamcor's revenues and share holder value for its investors.
|
