Northam increases shareholding in Zambezi Platinum to 80%

Northam increases shareholding in Zambezi Platinum to 80%
Mining News Pro - Platinum group metals miner Northam Platinum has acquired an additional 2.83-million preference shares in Zambezi Platinum.

According to Mining News Pro -aThis is in addition to an agreement that has been reached to acquire 13.83-million Zambezi preference shares from the Public Investment Commission (PIC) at a price of R95.37 apiece, both of which amount to a total cash consideration of about R1.3-billion.

This recent development and the acquisition of an aggregate of 16.66-million Zambezi preference shares at a total cash consideration of R1.6-billion, is a further step in Northam’s previously stated intention to achieve a reduction of the preference share dividend expense and liability in the financial statements.

It is also intended to reduce Northam’s financial exposure in terms of the guarantee Northam provides to Zambezi preference shareholders.

Further, the acquisition is also aimed at reducing the number of Northam shares in issue, in the event of Zambezi redeeming the Zambezi preference shares through a distribution of Zambezi-held ordinary shares in Northam.

Northam CEO Paul Dunne says the move will increase Northam’s holding to about 80.4%. “Northam’s acquisition of . . . Zambezi preference shares represents a significant step in pursuit of the company’s previously stated intention to accelerate the maturity of the Zambezi transaction. This strategy continues to positively impact future earnings and shareholder value creation.”

The PIC is a material shareholder of Northam as defined in the JSE listings requirements. Northam has appointed BDO Corporate Finance as the independent professional expert for purposes of providing an opinion in respect of the fairness of the related party acquisition.

BDO has considered the terms and conditions of the related party acquisition and is of the opinion that the related party acquisition is fair to shareholders.

   Short Link:  
Related News
chadormalu Co.
khuzestan steel
sangan steel