https://www.miningweekly.com

R&E shares rise on 'distributions' of R310m

12th October 2010

By: Loni Prinsloo

  

Font size: - +

JOHANNESBURG (miningweekly.com) – JSE-listed Randgold & Exploration's (R&E's) share price jumped more than 14% on Tuesday, after it announced distributions amounting to R310-million to shareholders.

The company, led by CEO Marais Steyn, said in a statement that its board had approved a distribution in specie of R&E's shareholding in Gold Fields, comprising 2,271-million shares.

R&E shareholders would receive about 3,16 Gold Fields shares for every 100 ordinary shares held in R&E. The distributions were subject to the passing of a requisite resolution by the shareholders of R&E at a general meeting.

The board also approved a special dividend of 90c a share to the R&E shareholders by way of a payment from retained earnings.

The distribution in specie and the special dividend would result in a total distribution of R4,32 a share.

The three-million treasury shares currently held within the R&E group would not form part of the distributions.

R&E's stock rose to R6,70a share when the market closed in Johannesburg.

The company, formerly owned by the late Brett Kebble, had focused the past five years on the recovery of misappropriated assets. It resumed operational activities and trading on the JSE in 2010, after being suspended in 2005.

By July 5, 2010, the company had recovered and distributed over six million and 1,5-billion ordinary shares in Gold Fields and JCI Limited respectively. Further, some R250-million was recovered from a number of third parties in the form of assets and cash.

Currently, R&E's assets effectively consist of cash, after liabilities, of about R260-million, 2 270 687 ordinary shares in Gold Fields and a number of prospecting rights.

R&E said that its current asset base was in excess of its medium term operational requirements and that this was therefore an opportune time to release the distributions.

The distributions, as proposed, represent about 75% of the company's current market capitalisation.

 

 

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Alcohol Breathalysers
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (29/11/2024)
29th November 2024 By: Martin Creamer
Magazine video image
Magazine round up | 29 November 2024
29th November 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.104 0.131s - 126pq - 2rq
Subscribe Now