SAPPI

In March 2010, a Lereko led consortium concluded a BEE transaction with SAPPI, the world’s largest maker of glossy paper in the world. The transaction placed 30% of SAPPI’s South African operations in black hands, equivalent to 4,5% of SAPPI’s listed stock. The deal replaces a transaction concluded in 2006 between SAPPI and Lereko Property Company (LPC), in which LPC acquired 25% of the undivided share of SAPPI land holding. Under the new deal, the land ownership reverts back to SAPPI but the original consortium retains the right to co-develop the land with SAPPI.

The Lereko Consortium has, on one hand, the paper and pulp interest in SAPPI, and the property development rights, on the other. The consortium includes Lereko, Malibongwe, AMB, all SAPPI employees, SAPPI’s black managers, and a trust that will focus on projects to benefit the communities surrounding the paper manufacturer’s mills and plantations. Valli Moosa serves on the SAPPI board whilst Lulu Gwagwa chairs the Lereko Property Company.