Backtrack on BEE deal is likely
Software maker SAP South Africa is likely to backtrack from its previous plans to increase its black shareholding to 30 percent as it is evaluating other empowerment prospects.
Last year SAP, one of the first international companies to sell shares to black investors, restructured its local operations into two separate entities: SAP South Africa and sub-Saharan Africa.
The technology group planned to increase its black shareholding from 10.5 percent held by Blitech to 30 percent, to comply with empowerment regulations.
Blitech is an investment arm of the Black Information Technology Forum.
Claas Kuehnemaan, the managing director of SAP South Africa, said on Friday that the board was evaluating other empowerment options.
He would not comment on whether increasing equity to black shareholders was one of the options.
Multinationals are allowed to apply for an exemption to invest 25 percent of the value of their local subsidiaries in empowerment projects such as supporting black companies.
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