Northam increases shareholding in Zambezi Platinum to 80%
Platinum group metals miner Northam Platinum has acquired an additional 2.83-million preference shares in Zambezi Platinum.
This is in addition to an agreement that has been reached to acquire 13.83-million Zambezi preference shares from the Public Investment Commission (PIC) at a price of R95.37 apiece, both of which amount to a total cash consideration of about R1.3-billion.
This recent development and the acquisition of an aggregate of 16.66-million Zambezi preference shares at a total cash consideration of R1.6-billion, is a further step in Northam’s previously stated intention to achieve a reduction of the preference share dividend expense and liability in the financial statements.
It is also intended to reduce Northam’s financial exposure in terms of the guarantee Northam provides to Zambezi preference shareholders.
Further, the acquisition is also aimed at reducing the number of Northam shares in issue, in the event of Zambezi redeeming the Zambezi preference shares through a distribution of Zambezi-held ordinary shares in Northam.
Northam CEO Paul Dunne says the move will increase Northam’s holding to about 80.4%. “Northam’s acquisition of . . . Zambezi preference shares represents a significant step in pursuit of the company’s previously stated intention to accelerate the maturity of the Zambezi transaction. This strategy continues to positively impact future earnings and shareholder value creation.”
The PIC is a material shareholder of Northam as defined in the JSE listings requirements. Northam has appointed BDO Corporate Finance as the independent professional expert for purposes of providing an opinion in respect of the fairness of the related party acquisition.
BDO has considered the terms and conditions of the related party acquisition and is of the opinion that the related party acquisition is fair to shareholders.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation