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R142-m GIFT FROM DIRECTORS

Hosken Consolidated Investment (HCI) CEO Johnny Copelyn and chairman Marcel Golding donated a total of R142,5-m worth of securities to two foundations aimed at promoting development and education.

Calculated using the closing price of an HCI share on July 6, 2005 – R28,50 – the donations were made in four separate tranches; two by Copelyn, who donated R114-m worth of shares, and two by Golding, who donated R28,5-m in shares.

Copelyn’s donations went to the HCI Foundation, which a stock exchange news service (Sens) announcement says incorporates the Golden Arrow Foundation. Golden Arrow Bus Service is 100% owned by HCI.

HCI directors first spoke of the creation of the HCI and Golden Arrow foundations in their commentary on the company’s financial results for the year to end-March 2005. At the time, they stated it would have R250-m worth of assets: “The group has not itself made any financial contribution to the foundation, but HCI’s management team provides its management resources to the foundation.”

In addition, it explained that the foundation had “been constituted by way of a second deed of amendment to the Golden Arrow Foundation, which was adopted unanimously by the trustees thereof and is in the process of being duly registered.”

The foundation – which takes the form of a charitable trust – sets out to “promote the development of underprivileged persons… and provide bursaries, scholarships awards or other grants of financial assistance”. The trust’s funds are also to be made available to “the family members of underprivileged persons who are current or past employees of the group.”

HCI said: “The establishment of the foundation represents a continuation of HCI’s social responsibility initiative and is separate and distinct from its majority shareholder, Southern African Clothing and Textile Workers Union’s own social responsibility initiatives.”

One of Golding’s two donations of 500 000 shares (worth R14,25-m each) went to the HCI Foundation; the recipient of the other 500 000 securities was the Wheatfield Estate Foundation. Also a charitable trust, Wheatfield was created “for the benefit of approved public benefit organisations, individuals and entities which carry on public benefit activities and …individuals deserving of assistance and support for charitable, educational, religious, cultural and social reasons.”

It was not clear whether the Wheatfield Estate Foundation is part of the HCI Foundation. Neither Golding nor Copelyn were available for comment.

Source: Moneyweb – Ana Monteiro