McDonald's SA MD Greg Solomon told I-Net Bridge/BusinessLIVE on Friday, 1 July 2011, that the deal was never at risk, contrary to media reports, as it was done 18-24 months ago.
McDonald's SA and Shanduka chairman Cyril Ramaphosa concluded all conditions precedent relating to the deal on Thursday, which would see the latter responsible for the operation of McDonald's restaurants in SA.
"We have received all the necessary regulatory approvals from the National Treasury, SA Revenue Services, FSB Exchange Control, and the Competitions Commission Board. It's all systems go from our side. Ramaphosa is now our legal development licensee."
Franz Tomasek, SA Revenue Service's group executive for legal and policy affairs, said last month that companies that had completed their shareholding deals before 3 June would not be affected by the proposed moratorium on Section 45 of the Income Tax Act.
This proposal is contained in the Tax Laws Amendment Bill that is due to come before Parliament in August.
Should the law be passed and signed into effect by October, the 18 months of the moratorium would be set from the day it was first announced, 3 June.
The bill proposes to temporarily halt the use of Section 45 that permits the tax-free transfer of assets within a group of companies and has become a widespread means of creating tax efficiency by companies completing transactions.
However, Solomon said: "We have got a great market share, currently servicing 6.5 million customers every month in the country. We aim to double our footprint in the next four to five years from the existing 153 outlets. The staff complement would also double from the current 7,500. Cyril Ramaphosa will be influential in this growth strategy."
Shanduka's portfolio ranges from resources and industrial energy to financial services and beverages, among other sectors.
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