JOHANNESBURG (miningweekly.com) – Northam will proceed with the implementation of a share offer as part of a landmark R6.6-billion black economic-empowerment (BEE) transaction approved by shareholders last month.

The deal would, in conjunction with a previously concluded equity raising of R4.6-billion, take ownership levels in the company by historically disadvantaged South Africans (HDSAs) to 35.4%.

The company outlined earlier this year that the two-pronged transaction would see Northam issuing 112-million new ordinary shares, representing 22% of the company’s issued share capital (after the issue), to a special purpose vehicle (SPV) representing all the HDSA parties – now dubbed Zambezi Platinum – at a subscription price of R41 a share.

This amounted to an aggregate consideration of R4.6-billion.

The HDSA participants, through Zambezi Platinum, would acquire an additional 47-million existing ordinary shares from Northam’s anchor shareholder, the Public Investment Corporation (PIC), also at R41 apiece, for a total purchase consideration of R1.9-billion.

The company informed the market on Friday that qualifying shareholders would be granted the right to subscribe for 28.21 Zambezi Platinum preference shares for every 100 Northam shares held at the close of business on April 24.

The Zambezi Platinum preference shares would be issued to offer participants on May 18.

The offer was fully subscribed for by the PIC, which had committed to subscribe for up to 75.6-million Zambezi Platinum preference shares and Coronation Asset Management,  which would subscribe for up to 36.5-million shares in the SPV.

“Qualifying shareholders may apply to subscribe for excess offer shares on the same terms and conditions as those applicable to the subscription for Zambezi Platinum preference shares, pursuant to the exercise of their rights,” Northam outlined.

The entire proceeds of the offer would be used by Zambezi Platinum to subscribe for the BEE subscription shares at the BEE subscription amount.