The broad-based black economic-empowerment (BBBEE) shareholding of opencast mining contractor and construction materials supplier Buildmax had increased to over 25% following the conclusion of a new BEE deal.
New BEE partner, the renamed Mbewu Capital, formerly known as Tylox, secured a 10% stake in the JSE-listed group’s mining services unit.
The mining services unit comprised Diesel Power Opencast Mining, Buildmax Equipment and Services and Buildmax Equipment.
Buildmax would sell 100% of its mining unit to wholly owned subsidiary Diesel Power Group Holdings for redeemable preference shares with a face value of R500-million.
Following the transfer, Mbewu Capital would acquire ten new shares in Diesel Power Group Holdings for a total consideration of R10.
The effective date, subject to the consent of all debt providers, would be March 1.
Broad-based trust Inqolobane Investment Trust and 100% black-owned investment holding company Harmoserve held a 60% and 40% respective shareholding in Mbewu.