Black empowerment makes headway

In South Africa's largest Black economic empowerment deal, Anglo American and the National Empowerment Consortium (NEC) signed an agreement for Anglo to sell almost 48 percent shareholding in Johnnic (an investment holding company with interests in entertainment, media, casino, exhibitions and property) to the NEC over the following eighteen months. It was agreed that the first tranche of shares - at least 20% of Johnnic's 30,4 million shares - would be sold at R50, a 7% discount to the prevailing prices on the Johannesburg Stock Exchange. Johnnic's board would be enlarged to twenty members, of which the NEC would appoint ten, including the chairman. The decision to sell was interpreted as a response to political pressure to transfer economic power to the Black community.