Black economic empowerment (BEE) investors have seen hundreds of millions of rands wiped off their equity values because of recent market disruptions.
Corporate finance experts and analysts confirmed yesterday that the market turmoil would make it tougher for new BEE deals to be concluded using third party funding.
Banks had adopted stricter lending criteria in light of market volatility, they said.
Some BEE investors would be hard hit because of the debt they incurred in striking deals. This would make their equity exposure more sensitive to share prices, said analysts.
All market sectors have been affected, with resources hard hit in recent weeks.
Imperial, MTN, Barloworld, Sasol and Old Mutual have been identified as high-profile companies whose BEE deals were either already in distress or were headed for trouble.
full story from Business Report here
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