Chinese company eyes Village buy-out
JOHANNESBURG (miningweekly.com) – A Chinese venture capital, private equity and private wealth management firm Heaven-Sent has made an exclusive firm offer to acquire embattled Village Main Reef for R12.25 a share, with the intention of delisting the group from the JSE.
The deal, which excluded three-million Treasury shares, represented a 14.49% premium to Village's closing share price on the JSE on February 3 and a 45.68% premium to its 30-day volume-weighted average share price.
The parties entered into an implementation agreement, replacing a month-old term sheet, on Wednesday, following the completion of a due diligence investigation by Heaven-Sent, which would fund the transaction through its own cash resources.
To Heaven-Sent, which had over R37-billion in assets under its management, the acquisition of Village signified an “ideal investment” into the South African market, supporting a strategy of developing an “attractive business portfolio” in the region.
Village planned to take the deal to its shareholders for approval, while obtaining all other requisite approvals from the relevant Chinese and South African authorities by the end of July.
The transaction excluded the troubled antimony and gold operation Consolidated Murchison (Cons Murch), in Limpopo, which had entered voluntary business rescue in December after unlisted Australian suitor Stibium Mining failed to raise the $15-million funds to buy the 76.6% stake held by Village.
Village had committed R22-million as post commencement finance to Cons Murch to enable the continued operation of the mine until the operation was sold, taken out of business rescue or until the funds were depleted.
Currently, no agreement had been concluded for the sale of Cons Murch, which could possibly face provisional liquidation.
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