PADENGA Holdings Limited is seeking shareholders’ approval to establish two share option schemes for managers and employees in which they will own 10% and 5% shareholding in the company respectively, as it moves to comply with the empowerment regulations.
BY TARISAI MANDIZHA
The Indigenisation and Economic Empowerment Act stipulates that at least 51% shareholding of all businesses operating in Zimbabwe should be in the hands of locals.
In an abridged circular to shareholders, Padenga Holdings said the proposed transaction was intended to incentivise and empower qualifying employees and management of the company, to allow them to identify more closely with the activities of the company and to promote its continued growth and profitability by giving them the opportunity to acquire shares in the company.
The transactions have to be approved at an extraordinary general meeting of shareholders on May 18.
Padenga said the first agreement will be with Padenga Management Share Ownership Trust for 54 159 344 ordinary shares representing 10% of the company’s current issued ordinary share capital.
The second agreement will be with Padenga Employee Share Ownership Trust for 27 079 672 ordinary shares this represent 5% of the company’s current issued ordinary share capital.
Padenga said the proposed transactions were designed to comply with the requirements of the approved Indigenisation Implementation Plan, while enhancing the capital base of the business.
It said the share option schemes would lead to the incentivisation of employees and management and the close alignment of the long term interests of employees to the company and compliance of the company with the requirements of the Indigenisation and Economic Empowerment Act among others.