FH Johannesburg has brokered a Black economic Empowerment (BEE) deal with the CIDA Investment Trust. This forms part of the Johannesburg based office’s vision and responsibility to participate in the socio-economic transformation of South Africa.
The initiative is closely aligned with the economic transformation goals of the government of South Africa, and is designed to support the meaningful participation of black South Africans (African, Indian and Coloured persons) in the economic success of the company through the sale of equity to black South African Investors and staff.
According to Kevin Welman, managing director of FH South Africa, the deal embodies the principles of the agency.
“Fleishman-Hillard’s partnership with CIDA Investment Trust confirms that we are proud and committed to South Africa as a business, something our staff, clients and partners already know. Participating in South Africa’s economic transformation is as much a matter of opportunity as it is a duty, and we believe that we are now better positioned than ever to do business, create jobs and empower South Africans.”
The deal agreement allows FH South Africa to retain a 51 percent stake in the company, with 30 percent going to CIDA Investment Trust, therefore 30 percent of post tax profits of FH South Africa will go towards educating previously disadvantaged South Africans.
In addition a Black Staff Ownership Trust has been formed with 5 percent of the shares, and the remaining 14 percent ownership stake in the company will be held by local management.
According to Dr Taddy Blecher, Director of Community and Individual Development Association, and founder of CIDA Investment Trust, “Fleishman-Hillard today cements their commitment, as an international company of the highest calibre and reputation, to the long term sustainable future of South Africa. They’ve done this deal in a way that goes way beyond what is required of them in terms of South African legislation, and the company should be highly recognised for the values with which they do business.
“This agreement will positively impact on the lives of thousands of young South Africans over time, while simultaneously enhancing the value of the business, so its cause to celebrate what’s possible when minds and hearts come together to serve the highest good.”
What the staff had to say about the deal:
“The fantastic thing about the deal is that staff at FH can see the direct impact on those benefiting. We are able to visit the CIDA campus and get involved with the learning process, mentoring etc. It isn’t all on paper.” — Lisa Rabbitts, Account Director.
“The wait to find the right partner was well worth it, as the fit with CIDA and FH goes well beyond good business sense. Not only is this a great business deal in terms of opening doors for FH, but it helps to ensure that previously disadvantaged students get access to education at CIDA on a cost recovery basis. This drives much needed skills into the market, with hopefully the best PR graduates coming to sit right here at FH. I’m looking forward to getting involved and helping out with perhaps lecturing on campus, presenting new media trends.” — Casey Monteiro, Account Director.
I am proud to be a part of such a great deal; it truly defines the Fleishman brand.
— Davina Martins, Account Manager.