Northam Platinum has acquired an additional 2 830 957 preference shares in Zambezi Platinum (RF).
In addition, agreement has been reached to acquire 13 829 788 Zambezi preference shares from the Public Investment Commission (PIC) at a price of R95.37 per Zambezi preference share, for a total cash consideration of approximately R1.3-billion.
This recent development, the acquisition of an aggregate of 16 660 745 Zambezi preference shares at a total cash consideration of R1.6 billion is a further step in Northam’s previously stated intention to achieve the following:
- A reduction of the preference share dividend expense and liability in the financial statements
- To reduce Northam’s financial exposure in terms of the guarantee Northam provides to Zambezi preference shareholders
- The reduction in 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.
According to Paul Dunne, Northam’s CEO the company is pleased to return a further R1.6-billion of value to shareholders through the purchase of Zambezi preference shares, increasing Northam’s holding to approximately 80.4%. Northam’s acquisition of more than 80% 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.”