Keaton, Rutendo announce R150m flip transaction
JOHANNESBURG (miningweekly.com) – Coal producer Keaton Energy has inked a deal that will see Rutendo Mining exchanging its 26% shareholding in subsidiary Keaton Mining for 21.83% of the issued shares in Keaton Energy, the group said on Friday.
Rutendo would subscribe for 63.7-million fully paid Keaton Energy shares at R2.36 a share, equalling R150.6-million, while a cash payment of R6-million, payable in six equal interest-free monthly instalments, would be made to Rutendo Mining.
Keaton said in a statement that the purpose of the flip transaction was to give effect to an exchange agreement, that had arisen on the exercise of an exchange option by Rutendo Mining in terms of the original shareholders agreement between Keaton Energy, Rutendo and Keaton Mining, and to ensure that a certain number of Keaton Energy shares remained in the hands of black economic-empowerment (BEE) shareholders.
Rutendo would be restricted from trading in or disposing of any of the shares for three years.
“The Rutendo flip transaction enables Keaton Energy to retain and secure its BEE credentials on a group level, while providing Rutendo Mining access to a more liquid shareholding within the limits of the contractually agreed share restriction provisions,” Keaton noted in a statement.
The deal remained subject to approval by Keaton Energy and Rutendo shareholders, with the JSE and Keaton Mining having obtained Investec Bank’s approval, in accordance with the facility agreement between Keaton Mining and Investec.
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