Latest news with #ESOP
IOL News
11 hours ago
- Business
- IOL News
Barloworld's future at stake as Competition Tribunal hears acquisition details
Former executives in Barloworld are acquiring Barloworld through Entsha Proprietary Limited while Saudi Zahid Group is the other shareholder in Newco. Image: Supplied The Competition Tribunal hearing concerning the acquisition of the longstanding South African company Barloworld by Newco has ignited discussions around empowerment for historically disadvantaged persons as well as the company's impending delisting from the Johannesburg Stock Exchange (JSE). As the details unfolded on Wednesday, tensions rose over the implications of this significant transaction. Former executives in Barloworld are acquiring Barloworld through Entsha Proprietary Limited while Saudi Zahid Group is the other shareholder in Newco. With Newco intending to bump up its shareholding in the South African company, Barloworld will ultimately be delisted from the JSE. The merging parties through their legal representative told the Competition Tribunal hearing on Wednesday that the delisting of Barloworld was a major condition for the implementation of an Employee Share-Ownership Program (ESOP). After delisting, a women led consortium will also be empowered into the company. 'The merger parties' position is quite clear that if there is no delisting, they're not in a position to implement an ESOP. That being said, we are confident and the likelihood is that there will be a delisting,' the merging parties told the Competition Tribunal hearing. Newco is offering R123.10 per share for Barloworld. The tribunal also heard on Wednesday that Newco now has assurances of about 58% shareholders to raise its stake in the company and delist it. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Barloworld's financial performance adds context to what is at stake. For the year ended September 2024, revenue declined by 7% to R42 billion, with operating profit from core activities falling 12.6% to R3.8bn and Ebitda declining 7% to R5bn. Gross debt, however, eased 29% to R7.9bn. The delisting of Barloworld is important for Newco as without it, it will be 'practically difficult for it to implement' transactions overpowering historically disadvantaged persons. To attain this, Newco is pursuing to bump up its stake to 90%. 'So that is why the HDP transactions are conditional on Newco effectively acquiring all of the Barloworld shares and Barloworld being delisted,' said the merging parties legal representative at the hearing. Wiri Gumbie, principal analyst for mergers and acquisitions at the Competition Commission, told the hearing that he was 'hopeful' that Newco will attain the 90% threshold to unlock total control of Barloworld and delist it. However, some concerns emerged that the delisting of Barloworld may not be easy to attain given that some minority shareholders could be disinterested in giving up their interests in the company. 'It's sounding more and more that the chances of the delisting may certainly not happen. The chances of workers benefiting and the women led consortium benefiting is certainly hanging in the balance in this regard and unfortunately, it is a concern now regardless,' the Competition Tribunal heard. Gumbi also revealed that the Public Investment Corporation (PIC) had indicated that it required the securing of black economic empowerment shareholder participation for it to support the transaction. The merging parties had addressed and resolved this, and the PIC is now satisfied that this has been settled under the conditions set out. Newco had included the empowerment provisions for historically disadvantaged persons and the ESOP after discussions with the PIC. Remaining shareholders that elect not to sell their shares then the requirement to do an ESOP will risk further dilution of their minority stakes. 'If there are minority shareholders that remain on the list and there needs to be, for example, an issuance of new shares or some other major transaction to implement those, there would presumably be some kind of shareholder approvals and and basically shareholder votes required and on such matters,' said the merging parties legal counsel. 'It may well be that if the transaction is implemented by way of an issuance of new shares, they may be affected because they would be effectively a dilution of their shares.' BUSINESS REPORT
Economic Times
a day ago
- Business
- Economic Times
Fractal Analytics files DRHP targeting Rs 4,900 crore IPO
ETtech Fractal Analytics cofounder Srikanth Velamakanni Fractal Analytics has filed its draft red herring prospectus with the Securities and Exchanges Board of India (Sebi) on August 12 with the IPO target of Rs 4,900 crore. Of this, Rs 1279.3 crore will be fresh issue of shares and offer for sale will be Rs 3620.7 company aims to list in the NSE and BSE by December, according to sources aware of the development. After consumer and fintech startups that are eyeing an IPO in 2025, India will see the listing of the first AI company with Fractal Analytics amid the technological shift the country is witnessing. InMobi, which now has a huge AI focus, is planning its IPO as well and is in the process of redomiciling to India. Capillary Technologies had filed its IPO papers in June 2025. As of July 31, 4,960 Fractal employees were ESOP holders. With the company going for IPO, it is likely to mint over 100 millionaires as well. The company has registered Rs 2765.4 crore in revenue for FY25, up 25.9% from FY24 when the company registered Rs 2196.3 crore revenue. The company generated profit of Rs 220.6 crore in FY25, as opposed to loss of Rs 54.7 crore in FY24. Offloading shares Its existing shareholders, Apax (Quinag Bidco) and TPG will be selling shares worth Rs 1462 crore and Rs 1999 crore respectively. Two of its angel investors, Gulu Mirchandani's GLM Family Trust and Rao Remala will be selling a small portion of their shares, accounting for about Rs 129 crore and Rs 29 crore respectively, according to the DRHP. Founders Srikanth Velamakanni and Pranay Agarwal and their family, collectively hold 20% in the firm, and employees, 17% through the ESOP programme. The company is currently valued at $2.4 billion, after its recent $172 million fund raise through secondary sales last month. It became a unicorn in 2022, when it raised $360 million from TPG Capital Asia. The company has raised a total of $855 million. The company works with Fortune 500 firms to make better decisions using analytics. It recently partnered with OpenAI to help customers adopt AI by offering custom model solutions, and AI agents. The US is the largest customer base, accounting for about 65% of its revenue, and Europe at 16%. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Regulatory gray area makes investing in LVMH, BP tough For Indian retail How IDBI banker landed plush Delhi properties in Amtek's INR33k crore skimming As 50% US tariff looms, 6 key steps that can safeguard Indian economy Jane Street blow pushes Indian quants to ancient Greek idea to thrive Stock Radar: Astra Microwave showing signs of bottoming out after 16% fall from highs; time to buy? F&O Radar | Deploy Broken Wing in Paytm to play stock's bullish outlook These 9 banking stocks can give more than 28% returns in 1 year, according to analysts Why 2025 Could Be The Astrological Turning Point We've Been Waiting For
Business Standard
2 days ago
- Business
- Business Standard
Marico allots 69,397 equity shares under ESOP
Marico has allotted 69,397 equity shares of face value of Re. 1 each of the Company under various Schemes of ESOP 2016, to the eligible grantees, pursuant to exercise of stock options granted thereunder. Consequent to the aforesaid allotment, the paid-up share capital of the Company has increased to 1,29,78,94,756 equity shares of Re. 1 each aggregating to Rs. 1,29,78,94,756/-.
Business Standard
2 days ago
- Business
- Business Standard
KFin Technologies allots 14,471 equity shares under ESOP
KFin Technologies has allotted 14,471 equity shares under ESOP on 11 August 2025. Consequently, the issued, subscribed, and paid-up Equity Share capital of the Company has increased from Rs. Rs. 1,72,20,84,200/- comprising of 17,22,08,420 Equity Shares of face value Rs. 10/- each to 1,72,22,28,910/- comprising of 17,22,22,891 Equity Shares of face value Rs. 10/- each. Powered by Capital Market - Live News
Business Wire
2 days ago
- Business
- Business Wire
Metro Services Group Initiates Employee Ownership Transition
SAN FRANCISCO--(BUSINESS WIRE)--Metro Services Group, a leading provider of janitorial, engineering, and environmental services across California and the Pacific Northwest, announced today that a long-term transition to employee ownership was initiated on August 1 st through the implementation of an Employee Stock Ownership Plan (ESOP). An ESOP is a qualified retirement plan that allows eligible employees to gain an ownership stake in the company over time, based on tenure, role, and other factors. Under this new structure, ownership of the company will be transferred over time to eligible management-level employees through the ESOP. This allows qualified team members to earn shares and participate in Metro's future growth, based on tenure, compensation, and role. The move also reflects founder and CEO Michael Oddo's commitment to preserving Metro's independence while rewarding the employees who've helped build its success. 'This is a renewed commitment to our people and our future,' said Oddo who founded Metro Services Group three decades ago and built it into one of the industry's independent leaders in cleaning and maintaining commercial real estate spaces. 'It's about recognizing the team that built this company and ensuring they have a real stake in its continued success. I plan to remain fully engaged as CEO, and I couldn't be more excited about the strength and stability this brings to our clients and team alike.' The ESOP ensures that Metro remains privately held, locally led, and guided by its core values. The company's leadership and operations will remain unchanged, and the ownership transition will take place gradually over the next five years. 'The ESOP means that the team responsible for managing operations and ensuring our clients' spaces are maintained to the highest standard aren't just overseeing the work—they're owners,' said Derek Schulze, President of Metro Services Group. 'Our management team brings a deeper sense of pride, purpose, and accountability because they have real ownership in the company. This transition marks the beginning of an exciting new chapter for Metro—one that strengthens our leadership, deepens our commitment to excellence, and ultimately enhances the service we deliver to our clients.' What this means for clients: Stronger engagement: Participating employees have a stake in client success—driving greater accountability and service excellence. Long-term stability: Metro remains focused on sustainable growth—not short-term profits simply to satisfy outside buyers. Seamless continuity: Leadership, pricing, and service levels remain consistent across all regions and sectors. Metro's transition to increased employee ownership builds on a long-standing culture of internal growth and opportunity. Many of its current executives began their careers in janitorial or engineering roles and rose through the ranks. This next chapter reaffirms the company's belief in investing in people, creating career pathways, and building lasting value for participating employees and clients alike. Jacqueline Korajkic, Chief Financial Officer of Metro Services Group, added, 'With the launch of our Employee Stock Ownership Plan (ESOP), many of our team members now have a chance to become part-owners of the company they help shape every day. This move reflects something we've always believed—that the people behind the work deserve a stake in its success.' The first phase of the ESOP became effective last week. Eligible employees will begin to accrue ownership shares based on their tenure and role. Over time, the ESOP will become a meaningful vehicle for building wealth, deepening engagement, and reinforcing a culture of shared investment and accountability. Metro joins a respected group of employee-owned companies, following best practices modeled by organizations like Recology, Skyline Construction, and WinCo Foods. The transition is guided by experienced ESOP advisors and overseen by an independent trustee to ensure fairness and transparency throughout the process. 'This is fundamentally about building something lasting—for our clients, for each other, and for the communities we serve,' Oddo added. 'When employees think and act like owners, everyone wins.' Metro Services Group is an award-winning provider of janitorial, engineering, and sustainability for commercial properties and public agencies across California and the Pacific Northwest. Rooted in operational excellence, equity, and long-term partnership, Metro delivers sustainable solutions that elevate both spaces and people. We are now proudly transitioning to employee ownership.
