Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – JSE-listed Wescoal has entered into a subscription agreement that will raise its black ownership to about 59%.
A black economic empowerment (BEE) special purpose vehicle (SPV), whose shareholders comprise a consortium of existing Wescoal shareholders – Muthanyi Robinson Ramaite, Simeka Capital and Eric Nthuthuko Mzimela – will subscribe for nearly 125-million Wescoal shares for R211.41-million.
The consortium members will consolidate their existing shareholding in Wescoal under the BEE SPV and raise their aggregate shareholding in Wescoal from the current 37% to 59% when the transaction is completed.
Wescoal’s long-term coal supply agreement with Eskom requires it to increase its BEE ownership to more than 50% by end December 2016.