The transaction has boosted the BEE shareholding in TBWA \ South Africa to 30% - Cyril Ramaphosa's Shanduka Group already owning a 25% stake in the business. The net result is that TBWA \ South Africa has exceeded the BEE requirements of the advertising industry transformation charter three years ahead of schedule.
Group CEO Mike Bosman says that the dividend flow from the trust will be used to fund further economic empowerment initiatives such as skills development, performance incentive programmes and projects to ease the transport problems faced by many low income black employees: "As a group, TBWA \ South Africa is determined to be a leader in the economic transformation of the advertising industry, thus contributing to the overall transformation of South Africa's economy.
"This transaction is just one component of an aggressive strategy to accelerate the transformation and empowerment processes within TBWA \ South Africa, which includes incorporating progress milestones in these areas among the performance indicators of the management teams in our diverse business operations."
The implementation of TBWA South Africa's transformation strategy is being driven by a Transformation Committee, which was established at the beginning of 2005 with the mandate to facilitate the various transformation challenges within the organisation - which include culture, communication, recruitment, promotions, procurement, and employment equity.
"Although we believe that TBWA \ South Africa is doing well from a BEE perspective, we also believe that there is no room for complacency. To the contrary, we are determined to keep making strides in the process of transformation - not because of the charter's requirements, but because it's the right thing to do. Indeed, we are confident that the empowerment of South Africa's people will contribute meaningfully to the aspirations of our industry in particular by enabling us to leverage the incredible diversity of creative culture in our country."
Ramaphosa says: "I believe that every person in the greater South African work force contributes to the growth and development of our economy, and should therefore be given the opportunity to benefit from his or her contribution. We are most gratified that TBWA Worldwide and TBWA \ South Africa have taken this initiative to fruition and are confident that it will give black employees within TBWA \ South Africa the economic rewards they deserve - thus facilitating true transformation formation, for the benefit of our people."
