2010 a milestone year for Massmart Thuthukani empowerment beneficiaries
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2010 is set to be a lucrative year for beneficiaries of the Massmart Thuthukani Empowerment Trust, created for the benefit of permanent staff. This is the year they receive the full declared Massmart Holdings share dividend for the first time and this is also the year when a third of their allocation under the scheme vests, giving them proportional ownership of the substantial capital growth that has accrued since the scheme’s inception.
100% dividend payout
In April Thuthukani participants will receive 100% of the R2.52 ordinary dividend per share declared for the six months July to December 2009, which means that 10,279 Massmart staff will each receive a tax-free dividend payout of between R6,552 and R1,134 with their April salary, depending on individual allocations. The total payout for the period is R33,166,992.60, bringing the amount paid out in dividends since April 2007 to R 114,193,337.
During the first year of the transaction, participants earned 25% of the full Massmart dividend. In 2008, this increased to 50%, while in 2009 the figure increased to 75%. Dividends are payable in April and October.
First tranche of share allocation vests
On 1 October 2010, participants will see one third of their share allocation vest, giving them the option of keeping their allocation or selling one third (33,3%) and receiving the net proceeds after tax and selling expenses.
With shares originally issued at 49.98 and the share price currently trading at R 107. 25 beneficiaries will have seen 115 % capital growth in the value of their allocations since the scheme came into effect on 01 October 2006.
“We are extremely pleased to be able to deliver excellent returns for Thutukani participants during a year that represents an important milestone in our empowerment journey,” says CEO Grant Pattison.
The Massmart Thuthukani Staff Empowerment Trust currently has 10,279 beneficiaries, all of whom were issued shares in Massmart based on their length of service with the group. As an indicator, staff with less than one year’s service as at 1 October 2006 received 450 units and those with 20 years service or more received 2 600 units. As shareholders, they control 8% of the group.