Newly-formed black empowerment company Tosaco has acquired a 25 per cent take in fuels group Total South Africa.

Newly-formed black empowerment company Tosaco has acquired a 25 per cent take in fuels group Total South Africa.

Total SA is the latest company to comply with empowerment charter for the liquid fuels industry, which was devised by oil industry stakeholders in 2000. As CARtoday.com reported before, the charter specifies that historically disadvantaged people or groups must own 25 per cent of the industry within 10 years.

In terms of the new deal, the Tosaco empowerment consortium acquires a full-voting 25 per cent stake in Total SA, a deal that allows the stake to convert into ordinary shares over 10 years.

Tosaco has several shareholders: Calulo Investment Holding, SouthBase Investment Holdings, Capital Oil and the Employee Trust hold 50,2 per cent of Tosaco, while Amafutha International, Disability Employment Concerns Trust, Kgorong Investment Holdings, Lekoane Africa Energy, Nosina Investment Projects, Skotaville Energy, Umnotho we Sizwe Investment Holdings, Quantum Leap Investments and Timespan Investments hold the remaining 49,8 per cent in the company.

Tosaco's representative Zamani Jali told that mechanisms had been put in place to maximise the sustainability of the deal. Payment had been spread over 10 years and the previous shareholders had agreed to reinvest the proceeds.

Total SA currently has a 12,5 per cent share of the local fuel market, sales of about R12 billion a year and a 33 per cent share of the Natref refinery in Sasolburg.

Original article from Car