Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Information and Communication Technology (ICT) Charter

ICT Sector Code for Black Economic Empowerment

Code Series 100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment

Statement 102: Recognition in the Sale of Assets

4. Measurement Principles
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4.1The calculation of the ownership points in terms of paragraph 2.3.2 of the Ownership scorecard must be based on:
4.1.1The value of the transaction.
4.1.2The value of Equity Instruments held by black Participants in the Associated Enterprise;
4.1.3The carrying value of the Acquisition Debt of black Participants in the Associated Enterprise; and
4.2All calculations in terms of paragraph 4.1.1 to 4.1.3 must use a Standard valuation method.
4.3The Seller may claim the point for Ownership Fulfilment only if both the Seller and the Associated Enterprise comply with the requirements for the award of that point.
4.4Equivalency Percentages under this statement:
4.4.1Apply only to the ownership indicators in paragraphs 2.1 and 2.2 of the Ownership Scorecard;
4.4.2Do not apply to the ownership indicators in paragraphs 2.3 and 2.4 of the Ownership Scorecard.
4.5The Seller must include the Equivalency Percentages in its own Ownership Scorecard as if those percentages arose from black ownership of Equity Instruments in the Seller. The Equivalency Percentages for the indicators in paragraphs 2.1 and 2.2 of the Ownership Scorecard can be calculated in terms of Annexe 102(A).