Page 16 - KZN BUSINESS SENSE Vol3 No3

REPORTING BEE TRANSACTIONS INTRODUCING COX YEATS

COMMERCIAL & NATURAL
Michael Jackson, parties connected to the transaction documents must be submitted
Managing Partner at may be caught by this obligation. before a certificate of registration
Cox Yeats Attorneys It is also unclear as to what is issued by the Commission. The RESOURCES LAW TEAM
O n 9 June is meant by a major B-BBEE Commission is entitled to request ichael Jackson is the telecommunications, logistics,
additional information and call
transaction.
2017, the
recycling, and timber sectors.
Managing Partner at
for a meeting between the parties
The B-BBEE Codes and the
Department of BEE Act do not define a B-BBEE with a view to ensuring that the MCox Yeats Attorneys and Cox Yeat's professionals
head of the Commercial & Natural
principles behind the B-BBEE Act
Trade & Industry transaction let alone a major are achieved. Resources Law Team. His specialist have, either individually or
published B-BBEE transaction. practice areas are Business Law, collaboratively, written numerous
a notice It follows that contracting Corporate Mergers & Acquisitions, leading publications in areas of
requiring The notice states that a B-BBEE parties to empowerment Natural Resources & Energy, and their expertise, one of which is the
all parties transaction is a “transaction transactions may now be forced Empowerment & Transformation. “Guide to Mergers and Acquisitions
involved between entities / parties that to structure the transaction Michael is a member of the in South Africa”, published in 2016
in major results in ownership recognition in a manner acceptable to the International Bar Association and by LexisNexis.
B-BBEE in terms of Statement 100 of the Commission. This may include is listed in both the guide to the Although lawyers traditionally
transactions Codes”. complying with conditions World’s Leading Natural Resource defend their autonomy and
to register the transaction with the Statement 100 of the Codes is that extend beyond the Codes Lawyers and the World’s Leading individualism, Cox Yeats actively
B-BBEE Commission within 15 simply a statement which sets themselves. Energy Lawyers. promotes and balances this with
days of concluding the transaction. out and prescribes the principles The notice is vague and does team work and joint effort.
In addition, major B-BBEE which are to apply in measuring not achieve what is obviously Over the last seven years, Cox
transactions concluded between 24 BEE ownership and how points the intended objective. The Yeats has assembled a commercial Jackson says, “We strive to
October 2014 and 8 June 2017 must are allocated. It would seem that monetary threshold set out in the team of lawyers comprising six understand our clients’ operations
be registered within 60 calendar the notice contemplates that if notice should have applied to the partners, three associates and a and the detail of the legal landscape
days counted from 9 June 2017. a transaction would involve the BEE element of the transaction number of candidate attorneys. in which they navigate. We view
This is an optimal size unit for the
client relationships as long term
The notice states that a major allocation of BEE points under and not the entire transaction. In Team's specialisation in the merger, commitments. Our preferred
BEE transaction is one where the Statement 100 of the Codes, then addition, a B-BBEE transaction acquisition, amalgamation and approach is to build relationships
transaction value equals or exceeds this is a BEE transaction. should be defined as a transaction restructuring space. and rapport, which allows clients
R25 million. Thus, the situation may arise whereby BEE investors acquire a This Cox Yeats team is now to be confident with our legal
Although the notice does not where a transaction, if measured material percentage in ownership possibly the largest grouping of grounding and ability to offer
of a business or company as
expressly clarify the position, it under Statement 100, results in the opposed to a minor or immaterial skilled professionals in KwaZulu- pragmatic commercial solutions.”
would appear that the threshold of allocation of a score for ownership, percentage. Natal which focuses on this area The Commercial Team members
R25 million applies to the entire even if not material, would and which also has expertise in: are: Michael Jackson, Managing
transaction value as opposed to the require registration provided the By defining a broad based ■ Corporate Finance Partner; Simon Watson, Partner;
BEE component of the transaction. transaction value equals or exceeds black economic empowerment ■ Corporate Advisory Jenna Padoa, Partner; Keren
This is evident from the statement R25 million. transaction as being almost ■ Competition Law Watson, Partner; Jason Goodison,
made in the notice that “for The B-BBEE Commission have any transaction involving black ■ Empowerment and Partner; Wade Ogilvie, Associate;
Statement 102, Transaction Value clarified that registration must people, even if insignificant, we Transformation Cherese Thakur, Associate;
means the value of the sale asset / be done by the completion of a believe the Minister has exceeded ■ Natural Resources and Energy Spencer Cason, Associate;
business / equity instrument.” form BBBEE18 accompanied by the powers conferred upon him ■ Dispute Resolution Benjamin Meadows, Candidate

The obligation to register a description of the transaction, under the B-BBEE Act.  ■ Mergers, acquisitions, Attorney; Xola Madikizela,
is imposed not only on the a copy of the transaction Amalgamations and Candidate Attorney. 
empowerment investor but agreements, finance agreements For more information please call to Restructuring
every person “involved” in the where applicable, a schematic speak to one of our team on: The Team has a particular focus
transaction. Thus, the banks, in diagram of the structure and any Tel. 031 536 8500 or on the mining, sugar, banking,
some cases, attorneys and other other relevant documents. These email: mjackson@coxyeats.co.za. manufacturing, agribusiness,
www.coxyeats.co.za

Michael Jackson Keren Watson Simon Watson Jenna Padoa Jason Goodison

Wade Ogilvie Cherese Thakur Spencer Cason Xola Madikizela Benjamin Meadows

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