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Exxaro concludes R3.6bn share repurchase scheme

27th January 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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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 Deal

Exxaro 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.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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