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Northam acquires additional Zambezi shares

6th August 2019

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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JSE-listed Northam Platinum acquired an additional 341 455 Zambezi Platinum preference shares from Coronation on Tuesday, at a price of R70.69 a share.

The cash consideration for the acquisition amounts to R24.1-million and takes Northam’s shareholding to 3.6% of all Zambezi shares in issue.

The face value of Northam’s 5.7-million Zambezi preference shares, calculated on August 6, amounts to about R403.5-million.

The acquisition of the additional Zambezi preference shares is expected to reduce the preference share dividend expense and liability included in Northam’s consolidated financial statements, as well as Northam’s potential financial exposure under the guarantee it provided to holders of Zambezi preference shares, should the guarantee be called upon.

The transaction will be funded from Northam’s cash reserves.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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