Registration of major B-BBEE transactions
On 9th June 2017, the Department of Trade and Industry published a notice in Government Gazette 40898 setting out the final thresholds for registration of Major B-BBEE Transactions.
In terms of the notice, any Major B-BBEE Transaction having a Transaction Value of at least R25 million must be registered with the B-BBEE Commission. A Major B-BBEE Transaction is any transaction that has resulted or will result in a measured entity claiming ownership points in terms of the ownership scorecard of the applicable BEE codes of good practice. The notice provides that Transaction Value excludes administration, professional and legal fees. The notice takes effect immediately. Every transaction concluded on or after 24 October 2014 must be registered within 60 calendar days from 9th June. The requirement includes sales of Assets, Business and Equity Instruments under Statement 102 but excludes Equity Equivalents for Multinationals.
It is important to note that the regulation does not constitute the requirement to obtain approval from the Commission before the transaction can be implemented. The regulations to the B-BBEE Act prescribe the requirements for registering Major B-BBEE Transactions. Parties must submit the transaction for registration within 15 business days after concluding the transaction.