JSE-listed platinum miner Northam Holdings has agreed to buy back about 14.6-million Northam shares from relevant Zambezi shareholders.
This represents 3.9% of the total issued share capital of Northam, for a purchase consideration of R165.29 apiece, or a total of R2.4-billion.
Northam deems the deal fitting for its strategy of returning meaningful value to shareholders.
The transaction will be implemented on or about September 23 and, thereafter, the total number of Northam shares in issue will reduce to 362-million.
Northam CEO Paul Dunne says the company believes this additional share repurchase will further enhance shareholder returns in the medium to long term.
“In conjunction with the successful implementation of the recently concluded Zambezi black economic empowerment (BEE) transaction, very significant value accretion has been permanently crystallised and transferred to our Zambezi empowerment partners.
“All risks pertaining to a potential or perceived share overhang have now been fully addressed, in an orderly and capital efficient manner.
“Upon completion of this repurchase, Northam will have 8.9% less shares in issue when compared to before the 2015 Zambezi BEE Transaction, being a unique outcome in the context of a very successful empowerment transaction which delivered on all of Northam’s expectations and enabled the group to substantially reposition itself in a counter-cyclical manner.”