Construction World February 2020

EQUIPMENT

Ground-breaking BBBEE AGREEMENT

Heavy equipment manufacturer and distributer, Bell Equipment, has concluded a Broad Based Black Economic Empowerment agreement, effective 1 January 2020,that will empower the Group’s South African manufacturing subsidiary, Bell Equipment Company South Africa (BECSA) and further empower the South African sales and distribution subsidiary, Bell Equipment Sales South Africa (BESSA).

At the signing ceremony were (seated from left): Bruce Ndlela (Business Development Director, BESSA), Duncan Mashika (Managing Director, BESSA), Dominic Chinnappen (Global Manufacturing Director, Bell Equipment Group), Niraj Andhee (General Manager: SA Manufacturing & Material Planning, BECSA), Diana McIlrath (Company Secretary, Bell Equipment Group); Karen van Haght (CFO, Bell Equipment Group), Avishkar Goordeen &KLHI 6WUDWHJ\ 2IͧFHU %HOO (TXLSPHQW *URXS %KDUWL +DULH 6LEL &DSLWDO 6LQGL 0DEDVR .R\DQD 6LEL &DSLWDO =LQKOH 'ODPLQL %HOO (TXLSPHQW )RXQGDWLRQ 7UXVW EHQHͧFLDU\ (standing from left): Gary Bell (Chairman, Bell Equipment Group), Tiisetso Masimula (Transcend Capital), Xolisa Beja (Beja Attorneys Inc.), Bruce Hunt (Transcend Capital), Leon Goosen (CEO, Bell Equipment Group) and Craig Brown (Finance Manager, BECSA).

C ommenting on the empowerment transaction, Bell Equipment *URXS &KLHI ([HFXWLYH 2ͦFHU /HRQ *RRVHQ VDLG WKDW ERWK %(&6$ DQG %(66$ ZLOO EH EODFN RZQHG DQG DOLJQHG ZLWK Government’s economic transformation policies. This will improve the BEE scorecards of both entities and position the Group more competitively in the South African market in addition to a number of RWKHU VLJQLͤFDQW EHQHͤWV ̸%(&6$ DV D EODFN RZQHG HQWLW\ ZLOO EHQHͤW IURP FRQWLQXHG access to Automotive Production and Development Programme (APDP) funding, the ability to increase manufacturing throughput and encourage the drive for greater industrialisation. We estimate BECSA to achieve a Level 3 BBBEE recognition. ̸7KLV WUDQVIRUPDWLRQ ZLOO DOVR EH DGYDQWDJHRXV WR %HOO FXVWRPHUV DV %(66$ ZLOO EH D EODFNHG RZQHG DQG EODFN ZRPHQ RZQHG entity, with an estimated Level 1 BBBEE recognition, allowing our FXVWRPHUV WR PD[LPL]H WKH EHQHͤW RI WKHLU SURFXUHPHQW VSHQG IURP BESSA. In addition, an improved BBBEE level, coupled with our local PDQXIDFWXULQJ LV DOLJQHG ZLWK WKH JRDOV RI WKH 0LQLQJ &KDUWHU DQG 6$15$/̵V WUDQVIRUPDWLRQ JRDOV̹ H[SODLQHG *RRVHQ %(66$ EHFDPH EODFN ZRPHQ RZQHG LQ $SULO ZKHQ VKDUHV ZHUH VROG WR %(( VKDUHKROGHUV ̰ WR 6,%, &DSLWDO D Black women owned and managed company, with Sindisiwe Mabaso- .R\DQD DQG %KDUWL +DULH DV WKH XOWLPDWH VKDUHKROGHUV DQG WR D %%%(( WUXVW WKH %HOO (TXLSPHQW )RXQGDWLRQ ZKLFK EHQHͤWV EODFN IHPDOH EHQHͤFLDULHV Both Sibi Capital and the Foundation will also participate in the FXUUHQW HPSRZHUPHQW WUDQVDFWLRQ ZLWK D GLUHFW VKDUHKROGLQJ RI HDFK LQ %(&6$ ̸2XU SDUWQHUVKLS ZLWK 6LEL &DSLWDO DQG WKH )RXQGDWLRQ has proven successful as they are aligned to our business and we have a solid foundation on which to build a long-term UHODWLRQVKLS WKDW FDQ DGG YDOXH WR RXU EXVLQHVV̹ VDLG *RRVHQ

Black management shareholders $ EODFN PDQDJHPHQW FRPSDQ\ FRPSULVLQJ FXUUHQW %HOO H[HFXWLYHV Avishkar Goordeen, Dominic Chinnappen, Duncan Mashika, Bruce Ndlela and Niraj Andhee as well as the Bell Foundation will hold an HIIHFWLYH VKDUH LQ %(&6$ DQG D VKDUH LQ %(66$ ̸7KH %HOO PDQDJHPHQW WHDP PDNLQJ XS WKH %(( PDQDJHPHQW FRPSDQ\ DUH D ZHOO EDODQFHG DQG KLJKO\ TXDOLͤHG WHDP ZLWK \HDUV of institutional knowledge. They bring together the necessary PDQXIDFWXULQJ H[SHUWLVH QHZ EXVLQHVV GHYHORSPHQW IRFXV VDOHV and distribution skills and are able to continue to spearhead interactions with the private and public sectors. Provision has also been made through the structure to allow To accommodate the empowerment transaction, it was necessary to restructure the organisation and Bell Equipment SA Holdings has been formed as a holding company through which both BECSA and BESSA will be owned. All the group functions, and functions associated with being an original equipment manufacturer will reside in a new company known DV %HOO (TXLSPHQW *URXS 6HUYLFHV %(*6 ZKLFK ZLOO EH RZQHG by Bell Equipment Limited. ̸7KLV %%%(( WUDQVDFWLRQ UHͥHFWV RXU FRPPLWPHQW WR 6RXWK $IULFD and we wish our partners well in their new roles as we begin a new chapter of the Bell legacy together". :H DUH H[FLWHG DERXW WKH IXWXUH of our country and believe that our entities are now optimally positioned to continue to deliver our premium product range and FRPSUHKHQVLYH VXSSRUW QHWZRUN IRU WKH PD[LPXP EHQHͤW RXU FXVWRPHUV̹ FRQFOXGHG *RRVHQ ƒ IRU IXWXUH PDQDJHUV WR SDUWLFLSDWH̹ VDLG *RRVHQ 5HVWUXFWXULQJ IRU HPSRZHUPHQW

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CONSTRUCTION WORLD FEBRUARY 2020