Lesaka gets green light to launch Employee Share Ownership Plan
Lesaka Technologies (Nasdaq: LSAK) shareholders have approved the creation of an Employee Share Ownership Plan (ESOP), allocating 3% of issued shares (worth approximately R215 million) to the Lesaka ESOP Trust. The plan, excluding executives and senior leadership, offers equal benefits to all qualifying employees regardless of position or demographics. The ESOP features a seven-year vesting period with dividend rights and potential capital appreciation benefits. The trust is structured as evergreen, allowing future employee inclusion, and will contribute to the company's BBBEE rating, with 87% of employees from designated groups. Implementation begins January 31, 2025, requiring a minimum two-year service qualification by December 31, 2024.
Lesaka Technologies (Nasdaq: LSAK) ha ricevuto l'approvazione degli azionisti per la creazione di un Piano di Partecipazione Azionaria per i Dipendenti (ESOP), destinando il 3% delle azioni emesse (del valore di circa R215 milioni) al Trust Lesaka ESOP. Il piano, escludendo dirigenti e leadership senior, offre benefici equi a tutti i dipendenti idonei, indipendentemente dalla posizione o dai dati demografici. L'ESOP prevede un periodo di maturazione di sette anni con diritti sui dividendi e potenziali benefici di apprezzamento del capitale. Il trust è strutturato come evergreen, consentendo l'inclusione futura dei dipendenti e contribuirà alla valutazione BBBEE dell'azienda, con l'87% dei dipendenti provenienti da gruppi designati. L'implementazione inizierà il 31 gennaio 2025, richiedendo una qualifica di servizio minima di due anni entro il 31 dicembre 2024.
Lesaka Technologies (Nasdaq: LSAK) ha aprobado la creación de un Plan de Participación Accionaria para Empleados (ESOP), destinando el 3% de las acciones emitidas (por un valor aproximado de R215 millones) al Fideicomiso Lesaka ESOP. El plan, excluyendo a ejecutivos y altos dirigentes, ofrece beneficios equitativos a todos los empleados calificados, independientemente de su posición o demografía. El ESOP cuenta con un periodo de adquisición de siete años, con derechos a dividendos y posibles beneficios por apreciación del capital. El fideicomiso está estructurado como evergreen, permitiendo la inclusión futura de empleados y contribuirá a la calificación BBBEE de la empresa, con un 87% de los empleados procedentes de grupos designados. La implementación comenzará el 31 de enero de 2025, requiriendo una cualificación de servicio mínima de dos años antes del 31 de diciembre de 2024.
Lesaka Technologies (Nasdaq: LSAK) 주주들이 직원 주식 소유 계획 (ESOP) 생성에 승인했으며, 발행된 주식의 3% (약 R215백만의 가치)를 Lesaka ESOP 신탁에 할당합니다. 이 계획은 경영진과 고위 리더십을 제외하고 모든 적격 직원에게 직위나 인구 통계에 관계없이 동등한 혜택을 제공합니다. ESOP는 배당권과 잠재적 자본 상승 혜택을 갖춘 7년의 취득 기간을 특징으로 합니다. 이 신탁은 evergreen 구조로 되어 있어 미래 직원의 포함이 가능하며, 87%의 직원이 지정된 그룹에서 나오는 BBBEE 등급에 기여할 것입니다. 시행은 2025년 1월 31일에 시작되며, 2024년 12월 31일까지 최소 2년의 근속 자격이 요구됩니다.
Lesaka Technologies (Nasdaq: LSAK) a obtenu l'approbation de ses actionnaires pour la création d'un Plan d'Actionnariat des Employés (ESOP), allouant 3% des actions émises (d'une valeur d'environ R215 millions) au Trust Lesaka ESOP. Le plan, excluant les cadres et la haute direction, offre des avantages équitables à tous les employés éligibles, indépendamment de leur poste ou de leurs données démographiques. L'ESOP comprend une période d'acquisition de sept ans avec des droits de dividendes et des avantages potentiels d'appréciation du capital. Le trust est structuré de manière à être evergreen, permettant l'inclusion future des employés, et contribuera à la notation BBBEE de l'entreprise, avec 87% des employés provenant de groupes désignés. La mise en œuvre commencera le 31 janvier 2025, nécessitant une qualification de service minimale de deux ans d'ici le 31 décembre 2024.
Lesaka Technologies (Nasdaq: LSAK) Aktionäre haben die Schaffung eines Employee Share Ownership Plan (ESOP) genehmigt, der 3% der ausgegebenen Aktien (im Wert von etwa R215 Millionen) dem Lesaka ESOP Trust zuordnet. Der Plan, der Führungskräfte und das obere Management ausschließt, bietet allen qualifizierten Mitarbeitern unabhängig von ihrer Position oder Demografie gleiche Vorteile. Der ESOP sieht eine siebenjährige Vestigungsperiode mit Dividendenrechten und potenziellen Kapitalzuwachs-Vorteilen vor. Der Trust ist als Evergreen strukturiert, was die zukünftige Einbeziehung von Mitarbeitern ermöglicht und zur BBBEE-Bewertung des Unternehmens beiträgt, wobei 87% der Mitarbeiter aus benannten Gruppen stammen. Die Umsetzung beginnt am 31. Januar 2025 mit einer Mindestdienstzeit von zwei Jahren, die bis zum 31. Dezember 2024 erreicht werden muss.
- Creation of employee ownership program worth R215 million
- Improvement in BBBEE rating through broad-based employee ownership
- Enhanced ability to attract and retain talent through long-term incentives
- Dividend rights included in the ESOP benefits
- 3% shareholder dilution through new share issuance
Insights
The implementation of a 3% employee share ownership plan valued at
The evergreen structure ensures sustainability and scalability as the company grows through acquisitions. From a financial perspective, this initiative strengthens Lesaka's competitive position in talent acquisition and retention, particularly important in the fintech sector. The BBBEE rating improvement adds regulatory and market advantages in South Africa, where
JOHANNESBURG, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Lesaka Technologies, Inc. (Nasdaq: LSAK; JSE: LSK) (“Lesaka” or the “Company”) shareholders voted on and approved the funding and issuance of shares to the Lesaka ESOP Trust at its annual general meeting.
Lincoln Mali, CEO Southern Africa, said “We are very proud of the launch of our broad-based employee share ownership plan. Lesaka has been on a far-reaching transformation journey and our employees becoming shareholders is a significant and an important milestone for us.”
The Lesaka Employee Share Ownership Plan (“ESOP”) is designed to create alignment with the Company's long-term growth objectives. The Lesaka ESOP Trust will hold an effective
“One of the distinctive aspects of the Lesaka ESOP is our commitment to shared ownership with a broad range of our employees. At inception, all qualifying employees, regardless of seniority, salary, race, or gender, will receive equal benefits from the plan. We believe that this approach will ensure that our employees, from entry-level to management, have a meaningful opportunity to benefit from the Company’s growth and success in line with our values. Group executives and senior leadership will not participate in the plan,” added Lincoln Mali.
As the leading independent fintech in Southern Africa and a natural consolidator, Lesaka has ambitious growth plans. To this end, the rules of the Lesaka ESOP Trust include both a sharing in the potential capital appreciation of the share price, as well as entitle beneficiaries to their share of any dividends paid by Lesaka.
“We operate in a competitive market for talent and skills and the ability of employees at all levels to participate in value creation beyond just salaries and short-term bonuses will serve as an important contributor to our employee value propositions and our ability to attract and retain talent,” said Mali.
The vesting component of the ESOP scheme is seven years, at the end of which, there will be a liquidity event in which all existing beneficiaries will participate in the benefits from a growth in Lesaka share price over the seven years. The liquidity event will be funded by the sale of Lesaka shares held by the Lesaka ESOP Trust post settlement of the notional vendor funding outstanding at the time, directly linking the benefits employees receive to the Company’s long-term performance and growth.
The Lesaka ESOP Trust is structured as an evergreen trust, ensuring the permanence of the plan and allowing for the inclusion of future employees as Lesaka continues to grow. Qualifying employees of the recent Touchsides and Adumo acquisitions will also be beneficiaries of the Lesaka ESOP Trust.
Finally, the Lesaka ESOP Trust advances Lesaka’s transformation initiatives and plays an important role in improving the company’s Broad-Based Black Economic Empowerment (“BBBEE”) rating. Lesaka’s employee base is comprised of approximately
“We have come a long way already in the short space of time since launching Lesaka nearly three years ago, but we are still at an early stage of our evolution. We believe our employees becoming owners in the Company and sharing in the exciting journey ahead for Lesaka can make a meaningful difference in their lives,” said Mali.
Lesaka is expected to issue shares to the Trust on 31 January 2025, with a minimum two-year service qualification criterion being determined on 31 December 2024. Initial qualifying employees will receive invitation and allocation notices on or before 31 March 2025. As employees complete two years’ service with any Lesaka group company they will become eligible for consideration as a beneficiary of the Lesaka ESOP Trust.
About Lesaka (www.lesakatech.com)
Lesaka Technologies, (Lesaka™) is a South African Fintech company driven by a purpose to provide financial services and software to Southern Africa’s underserviced consumers (B2C) and merchants (B2B), improving people’s lives and increasing financial inclusion in the markets in which we operate. We offer a wide range of integrated payment solutions including transactional accounts (banking), lending, insurance, payouts, cash management solutions, card acceptance, supplier payments, software services and bill payments. By providing a full-service fintech platform in our connected ecosystem, we facilitate the digitization of commerce in our markets.
Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit www.lesakatech.com for additional information about Lesaka Technologies (Lesaka ™).
Forward-Looking Statements
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “expects,” “estimates,” “projects,” “believes,” “anticipates,” “plans,” “could,” “would,” “may,” “will,” “intends,” “outlook,” “focus,” “seek,” “potential,” “mission,” “continue,” “goal,” “target,” “objective,” derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, statements relating to future financial results and future financing and business opportunities are forward-looking statements. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in our Form 10-K for the fiscal year ended June 30, 2024, as filed with the SEC, as well as other documents we have filed or will file with the SEC. With respect to Lesaka ESOP Trust and issuances to beneficiaries, additional factors that could cause actual results to differ materially from those indicated or implied by the forward-looking statements include, among others: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the Lesaka ESOP Trust; and (2) our ability to realize the anticipated benefits of the Lesaka ESOP Trust. We assume no obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual results could differ materially from those anticipated in forward-looking statements.
Investor Relations and Media Relations Contacts:
Phillipe Welthagen
Email: phillipe.welthagen@lesakatech.com
Mobile: +27 84 512 5393
Media Relations Contact:
Ian Harrison
Email: Ian@thenielsennetwork.com
FAQ
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