BEE Law and Sectoral Charters

MHA advises clients on various laws aimed at achieving BEE objectives. MHA has experience in employment equity and skills development matters, the DTI codes of good practice, various sectoral charters on BEE, and on structuring BEE deals to ensure compliance with BEE laws. The firm also provides advice on tax related aspects of certain BEE deals including broad based share incentive schemes.

Key BEE Law and sectoral charters projects we have been involved in are:
  • Advising a BEE group and negotiating a joint venture agreement with an estimated value of approximately R4bn pertaining to the establishment of a large manganese mining company to mine for manganese in the Kalahari in a joint venture with Renova Group of Russia.
  • Advising a BEE group in the acquisition of all the shares held by Adcorp Limited in a printing and publications business. These agreements included a share sale agreement, preference share agreement and shareholders agreement.
  • Advising a BEE group in the acquisition of a controlling stake in Holcim SA (now Afrisam) for an estimated value of R14bn. This transaction involved conducting a due diligence investigation, drafting and negotiating the sale of shares agreement and establishing and structuring community trusts.
  • Advising a BEE group in the acquisition of a minority interest in Alcatel South Africa. The agreements included a share subscription agreement, preference shares agreement and services agreements.
  • Advising a BEE consortium in the disposal of a significant minority interest in United Manganese of Kalahari (Pty) Ltd to Samancor Limited to the value of about R1bn. These agreements included a shareholders agreement, share sale agreements, pledge and cession agreements and preference share agreements.
  • Advising a BEE group in the acquisition of a substantial coal mine with an estimated value of R800m from BHP Coal Energy South Africa (Pty) Ltd. These agreements included a sale of prospecting right agreement, pledge and cession agreement, various guarantee undertakings and support agreements, shareholders agreement, share sale agreement and a mutual cooperation agreement.
  • Advised Akanani Consortium in the sale of its R800 million stake in Akanani Mining to Incwala. This transaction involved, inter alia, drafting of the sale and purchase agreement, drafting of the Competition Commission filing and drafting an application for ministerial consent in terms of section 11 of the MPRDA.

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