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28 July 2006
Standard Bank's broad-based black empowerment initiative attracted over 500 applications countrywide from small-medium enterprises (SMEs) wanting shares in the bank.
Standard Bank announced in January that it had embarked on a process of identifying and selecting about 250 SMEs that will be beneficiaries in the Tutuwa Community Trust, which was formed for the benefit of regional business and community development groupings. The Tutuwa Community Trust is one of the participants in the broad based grouping of black entities that acquired an effective 10% interest in the South African banking operations of the Standard Bank in the black ownership initiative transaction announced on 15 July 2004.
The trustees of the Tutuwa Community Trust have completed the selection process and have identified 178 SMEs who meet the qualifying criteria, which included being black owned and contributing to the alleviation of unemployment on a sustainable basis.
"We are delighted with the response that we have had from SMEs, particularly from those in the larger provinces of Gauteng, KwaZulu-Natal and the Western Cape," said Simon Ridley, Standard Bank Group Financial Director.
In total, 526 SMEs applied for Standard Bank shares, of which 242 met the qualifying criteria. These were further narrowed down to 178, using the Financial and Fiscal Commission?s equitable share formula to determine the number of selected participants in each province. Although the combined number of qualifying applications received from all the provinces was close to the total target of 250, Gauteng, KwaZulu Natal and Western Cape were oversubscribed while the number of qualifying applications received from the other six provinces was less than the provincial targets set.
Ridley said that the objective from the outset was to ensure that there was an equitable distribution of shares throughout the provinces. Based on this, it had been decided try to identify further suitable applicants in the six provinces that had shortfalls.
"The trustees remain committed to meeting the initial objective of having a reasonable broad base of participants from all nine provinces," he added.
Standard Bank management in the provinces with shortfalls will be tasked with identifying and motivating applicants. In addition, organised business and regional professional bodies will be approached to assist with identifying suitable applicants.
This process is expected to take a further three months, and the names of all the SMEs that have been awarded participation rights will be announced in November.
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