All staff members employed as at 1 January 2006 will be eligible to receive the shares, which will be issued during the first quarter of 2006. Mondi employees who accept the share offer will each be allocated 100 shares, plus five additional shares for each year of service within the group.
The shares will vest after five years and employees who leave during this period will receive the value of their shares as at the last applicable December or June valuation date.
The Employee Share Ownership Plan (ESOP) is a result of the empowerment partnership between Shanduka and the Mondi newsprint and the packaging businesses. Mondi's South African and European operations were streamlined and integrated towards the end of 2004, resulting in the creation of empowerment partnerships with Shanduka Holdings in Mondi Packaging and Mondi Shanduka Newsprint.
According to Mondi Chairman Godfrey Gomwe, the share ownership scheme reflects "the spirit of true empowerment and an overwhelming confidence in the future of Mondi in South Africa".
Since the rebranding and integration of Mondi operations in 2004, the group has invested over R3.5 billion in its South African operations.
Executive Chairman of the Shanduka Group, Cyril Ramaphosa, says: "The initiative is in line with our empowerment philosophy and strategy to invest in companies where we can create value for our shareholders and ensure that true and meaningful broad based empowerment does filter through. We strongly believe that this plan will further motivate the Mondi employees."
