29th March 2007
Macmillan announces first Black Empowerment agreement in the South African book publishing sector
International publisher Macmillan has announced that its South African operation, Macmillan South Africa (Pty) Ltd, has concluded a
Broad-Based Black Economic Empowerment (BE) transaction, a first for the book publishing sector in South Africa.
Richard Charkin, Chief Executive of Macmillan, said: 'Ever since Harold Macmillan's Winds of Change speech to the Cape Town Parliament
in 1960 South Africa has had a special place in the Macmillan culture. We are extraordinarily proud to lead the way in this vital area
of the new South Africa.'
Chris Paterson, Chairman of Macmillan South Africa says that the company’s commitment to growing the publishing industry is the
motivation for brokering the BE deal. “We feel it strategically imperative to align with the requirements of Government to broaden
the base of ownership, as well as to ensure the sustainability of a reading culture and industry for the future.”
Macmillan has been primarily focused on transactions that enable empowerment beyond a few individuals to a far broader group of
disadvantaged people.
“…We will be classified as an “empowered company”, since the benefits of shared company ownership are to be used for empowerment
purposes…We will also play a part in helping to address many of the socio-economic issues that impact education today,” continues
Paterson.
Three transactions will see the transfer of 25 percent of Macmillan shares to newly established Trusts to provide share ownership
benefits to learners and educators in Gauteng initially, black authors and staff. These will be the Macmillan Authors' Trust (5% of
shares), the Macmillan Employee Share Trust (5% of shares) and the READ Empowerment Trust in partnership with READ Educational Trust and
the Gauteng Department of Education (15% of shares).
“If we want to have a literate population beyond 2010, we must find ways of improving education, increasing literacy, fostering a
culture of reading and learning, and drawing out budding talent to build a strong, vibrant and ethical educational publishing sector,”
says Paterson.
Macmillan’s move to embrace BE is ahead of the rest of the industry, even ahead of an Industry Charter. “We have not chosen the easiest road, but we believe that in the long term it will be the best solution for the company, the staff, the author community and the education sector.”
For more information contact Sara Lloyd s.lloyd@macmillan.co.uk
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