Absa mulls a R9.5 billion empowerment scheme for 2022

Absa, SA’s fourth-largest bank by market value, says it is considering a new BBBEE scheme that could constitute up to 8% of its issued share capital.

According to the bank, implementation is expected in 2022, and the figure would be inclusive of the Absa Empowerment Trust shares, currently at 1.9% of the group’s total.

As of Wednesday morning, 8% of the group’s shares were worth R9.5 billion.

Work on the development of a new Absa BBBEE scheme was put on hold in 2020 as market conditions were not conducive during the Covid-19 pandemic and economic downturn, said Absa in its statement.

“However, with market conditions improving, we have re-engaged advisers and are again considering implementing a new BBBEE ownership transaction.”

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