Northam to buy more Zambezi preference shares
Platinum group metals (PGMs) miner Northam Platinum will acquire a further 3.98-million Zambezi preference shares from Coronation Asset Management at a price of R73.50 a share.
The total purchase consideration will be about R292.6-million and will be funded from Northam's cash reserves.
The acquisition is expected to occur on September 30.
When concluded, Northam will hold about 23.39-million Zambezi preference shares, which represents about 14.6% of all Zambezi preference shares in issue.
Northam last week bought about 13.7-million Zambezi preference shares from the Public Investment Corporation for about R1.01-billion in cash.
The PGMs company noted at the time that the acquisition of the preference shares would be beneficial to Northam shareholders as it would reduce the preference share dividend expense and liability included in Northam’s consolidated financial statements.
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