Ellies has strong operational BEE credentials, with over 75% of the total workforce and 31% of middle management being black. The group emphasises black management development and promotion from within.
To further promote true broad based black empowerment within the organisation, Ellies has issued 11,5 million shares to its staff, as a reward for outstanding loyal service.
On 4 September 2007 the company announced a black empowerment deal in terms of which black-owned Famatla Industries (“Famatla”) acquired a 6,5% stake in the group in line with Ellies’ pre-listing objectives. Famatla is locked into Ellies for at least five years after the listing, with the added commitment to acquire more shares to reach a 10% threshold.
Famatla, headed by Ellies non-executive director Mahlubi Mazwi and Jack Phalane, a partner at leading law firm Fluxmans Inc, acquired a total of 15 million shares in Ellies. As the shares formed part of the vendor pool pre-listing, the deal did not necessitate a new issue of shares by the company. “Putting it simply, we have started our road to sustainable BEE at no cost to Ellies or our new investors,” says Ellies CEO Wayne Samson. As other black investors hold some 4,2% of the company’s shares, black ownership of Ellies including its staff, stands now at more than 10% of issued shares.