https://www.miningweekly.com

Exxaro eases BEE scheme replacement concerns

20th November 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

Font size: - +

JOHANNESBURG (miningweekly.com) – Diversified miner Exxaro Resources on Monday moved to ease shareholder concerns over its new replacement black economic empowerment (BEE) scheme that will ultimately hold a 30% stake in the JSE-listed firm.

Shareholders had queried the ultimate controller of K2016475450 (BEE SPV), the special purpose vehicle that would hold a 52.2% stake in K2016473215, or NewBEECo, which in turn will hold the 30% stake in Exxaro.

Exxaro has confirmed that it will hold a 24.9% stake in NewBEECo and the Industrial Development Corporation (IDC) 22.9%.

The BEE SPV comprises shareholders Eyesizwe Mining’s subsidiary Dreamvision Investments, which will hold an 84.2% stake, Eyabantu Capital, with 3.1%, and Basadi Ba Kopane Investments with 12.7%.

The diversified miner explained that Dynamo Investment, an Eyesizwe Mining shareholder, will be unbundled, and Eyesizwe restructured to ensure no single shareholder would control Eyesizwe Holdings.

“In addition, sufficient shares in Eyesizwe Mining will be transferred from Eyesizwe Holdings to the National Movement of Rural Women NPC, such that Eyesizwe Holdings would reduce to a 49.8% shareholding in Dreamvision Investments,” Exxaro said, adding that the end result would see Eyesizwe Holdings lose control over Dreamvision, and increase the broad-based nature of the structure.

Shareholders also queried the timing of both the introduction of an employee and community scheme, as well as the listing on an exchange restricting trading to historically disadvantaged South Africans (HDSA) parties.

“Exxaro has already noted in the circular to shareholders dated October 23, that a portion of its equity holding into NewBEECo is intended for the empowerment of communities and employees,” Exxaro pointed out.

The company aimed to finalise an appropriate structure and have executed all transaction agreements by June 30, 2018, to transfer no less than 10% of its equity holding in NewBEECo for the empowerment of relevant employees and communities.

Exxaro also planned to consult with the IDC and the Public Investment Corporation by November 2018 over the possible listing of the shares of NewBEECo on a stock exchange which restricts trading to HDSA parties.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION