JSE-listed Exxaro said last week that all conditions precedent to the specific repurchase of shares from its black economic-empowerment (BEE) partner, Main Street 333 (MS333), had been met.
Exxaro will acquire nearly 44-million ordinary shares from MS333 in a deal valued at around R3.5-billion.
The share repurchase follows the unwinding on November 28 of its previous BEE deal with MS333, which held 50.19% of the issued ordinary shares of Exxaro,.
New Bee DealExxaro has structured a new BEE deal and has come under fire from power utility Eskom, to which it supplies coal, and other parties, as the new scheme will result in a 30% BEE shareholding in Exxaro.
Eskom requires companies wanting to sign new coal supply agreements (CSAs) with it to have at least 50% black ownership and, while Exxaro’s existing CSAs with Eskom will not be impacted on, Eskom has said it wants to meet with Exxaro executives about the issue.