Communal wool and mohair growers benefit from BKB

Beneficiaries of a trust, formed by BKB for wool and mohair growers in the former Ciskei and Transkei, received R1,7 million in dividends for 2007. BKB presented the dividends to the top 25 communal shearing sheds, the beneficiaries of the trust, at a recent function in Port Elizabeth. W ith upliftment in mind, BKB formed the trust in 2005 by making shares to the value of R2,6 million available to the trust for just under R1 million. The present market value of the shares is now approximately R26,7 million, and dividends to beneficiaries have increased from R1,36 per share to the current R3,60, resulting in a total distribution to the trust of R1,17 million for 2007. In terms of the trust deeds, 50% of the dividends declared is used to repay the initial loan and the remaining 50% is distributed. After the 2007 distribution, the outstanding balance on the trust loans will be only R81 000 each, which means the loans will be fully paid up in the 2008 financial year. – Staff reporter