Employees to acquire 10% of shares in Clicks Group
Release Date: 2010/10/21
Cape Town - Clicks Group today announced a broad-based employee share ownership scheme which will see 10% of the group’s shares issued to employees.
The transaction is valued at R1.2 billion, based on the group’s market capitalisation at yesterday’s closing share price.
Shares will be issued at market price to all permanent employees, except senior executives currently participating in the group’s long-term incentive scheme.
Chief executive, David Kneale, said the scheme will enable Clicks Group to retain and attract scarce and specialist skills which are critical to the sustainability of the business.
“Pharmacists, senior black managers and longer serving employees will receive higher share allocations. The shortage of pharmacists is one of the biggest challenges facing our business. This scheme will enhance our ability to attract pharmacists into Clicks and give them an opportunity to share in the long-term growth and capital appreciation of the group.”
“Extending share ownership to all employees will accelerate transformation and build on the progress we have made across the other areas of black economic empowerment, particularly employment equity, skills development, preferential procurement and socio-economic development,” he said.
Approximately 70% of the shares will be allocated to black people, with 60% of these being black women, added Kneale.
The scheme is subject to shareholder approval at a general meeting in January 2011.