The black economic ownership in Aveng is substantial. Aveng was the first group to conclude a high-level black economic empowerment transaction in February 2005. The Qakazana Consortium, a broad-based consortium lead by Kagiso Tiso Holdings Group, holds a 25% interest in Aveng (Africa) (Pty) Ltd (comprising Aveng Grinaker-LTA, Aveng E-PC, Aveng Moolmans and Aveng Manufacturing) and a 25% interest in Aveng Trident Steel Holdings (Pty) Limited.
The nature of the relationship with Aveng and the transaction gives Kagiso Tiso Holdings Group both the incentive and the opportunity to contribute strategically and operationally to the business.
In 2007 the group's B-BBEE effective ownership credentials were strengthened by its support of a substantial B-BBEE transaction through the sale of its 46% stake in Holcim (Africa) (now named Afrisam). As a result, Aveng has already exceeded the targets for ownership set in the Construction Charter of 27,5% for Aveng (Africa) (Pty) Ltd and 30% for Aveng Trident Steel, after four and seven years, respectively.
The members of the Qakazana Consortium as at 30 June 2011 are:
Members of the BEE consortium
The Qakazana consortium is broad-based and includes Aveng employees, a community trust and a business trust, with
more than 60% of the profits of the deal accruing to broad-based community groups.
The group regards this contribution to broad-based groups as an important component of the transaction.
Kagiso Tiso Holdings Group: Kagiso Tiso Holdings Group focuses on investing in businesses that produce sustainable and
strong cash flows and deliver consistent growth in capital value and dividends to shareholders.
Aveng Community Investment Trust: The trust is overseen by a board of trustees, and is registered as a public benefit
Aveng Empowerment Trust: The Aveng Empowerment Trust reserves 100% of its equity for permanent employees of Aveng (Africa) (Pty) Ltd including Aveng Grinaker-LTA, Aveng E-PC, Aveng Manufacturing, Aveng Trident Steel and Aveng Moolmans. The annual allocations of empowerment units are made to each employee in Aveng (Africa) (Pty) Ltd and Aveng Trident Steel for the duration of the scheme. Allocations are of equal size for all employees, irrespective of seniority. However, selected senior black employees are also eligible for additional units at the discretion of the trustees. To date 6 521 100 units have been issued by the trust to the employees.