20°C / 22°C
  • Sat
  • 24°C
  • 7°C
  • Sun
  • 25°C
  • 8°C
  • Mon
  • 26°C
  • 8°C
  • Tue
  • 26°C
  • 10°C
  • Wed
  • 26°C
  • 14°C
  • Thu
  • 26°C
  • 11°C
  • Sat
  • 20°C
  • 11°C
  • Sun
  • 16°C
  • 12°C
  • Mon
  • 15°C
  • 11°C
  • Tue
  • 15°C
  • 9°C
  • Wed
  • 14°C
  • 7°C
  • Thu
  • 15°C
  • 7°C
  • Sat
  • 25°C
  • 9°C
  • Sun
  • 25°C
  • 8°C
  • Mon
  • 27°C
  • 10°C
  • Tue
  • 27°C
  • 11°C
  • Wed
  • 28°C
  • 14°C
  • Thu
  • 29°C
  • 12°C
  • Sat
  • 25°C
  • 6°C
  • Sun
  • 26°C
  • 8°C
  • Mon
  • 27°C
  • 6°C
  • Tue
  • 27°C
  • 7°C
  • Wed
  • 28°C
  • 9°C
  • Thu
  • 29°C
  • 8°C
  • Sat
  • 25°C
  • 13°C
  • Sun
  • 28°C
  • 17°C
  • Mon
  • 22°C
  • 16°C
  • Tue
  • 22°C
  • 16°C
  • Wed
  • 20°C
  • 16°C
  • Thu
  • 21°C
  • 15°C
  • Sat
  • 25°C
  • 12°C
  • Sun
  • 20°C
  • 13°C
  • Mon
  • 16°C
  • 13°C
  • Tue
  • 16°C
  • 12°C
  • Wed
  • 15°C
  • 9°C
  • Thu
  • 16°C
  • 8°C
  • Sat
  • 23°C
  • 11°C
  • Sun
  • 18°C
  • 9°C
  • Mon
  • 13°C
  • 9°C
  • Tue
  • 13°C
  • 6°C
  • Wed
  • 13°C
  • 4°C
  • Thu
  • 13°C
  • 3°C
  • Sat
  • 21°C
  • 13°C
  • Sun
  • 16°C
  • 11°C
  • Mon
  • 13°C
  • 10°C
  • Tue
  • 12°C
  • 8°C
  • Wed
  • 12°C
  • 7°C
  • Thu
  • 13°C
  • 7°C
  • Sat
  • 26°C
  • 10°C
  • Sun
  • 26°C
  • 9°C
  • Mon
  • 28°C
  • 9°C
  • Tue
  • 28°C
  • 10°C
  • Wed
  • 29°C
  • 10°C
  • Thu
  • 31°C
  • 10°C
  • Sat
  • 24°C
  • 6°C
  • Sun
  • 25°C
  • 8°C
  • Mon
  • 25°C
  • 9°C
  • Tue
  • 25°C
  • 7°C
  • Wed
  • 24°C
  • 9°C
  • Thu
  • 23°C
  • 5°C
  • Sat
  • 26°C
  • 8°C
  • Sun
  • 29°C
  • 6°C
  • Mon
  • 28°C
  • 7°C
  • Tue
  • 31°C
  • 9°C
  • Wed
  • 28°C
  • 11°C
  • Thu
  • 27°C
  • 12°C
  • Sat
  • 26°C
  • 12°C
  • Sun
  • 19°C
  • 12°C
  • Mon
  • 14°C
  • 10°C
  • Tue
  • 15°C
  • 9°C
  • Wed
  • 14°C
  • 6°C
  • Thu
  • 15°C
  • 5°C

Northam launches $600m BEE deal

The deal with black shareholders will see the company increase its black ownership to over a third.

Northam Platinum CEO Paul Dunne. Picture: Facebook.com

JOHANNESBURG - South Africans Northam Platinum has agreed to a $600 million deal with black shareholders that will see it increase its black ownership to over a third, the mid-tier platinum producer said on Wednesday.

Northams share price fell 2,25 percent in early trade to R35.

South African companies are required to meet targets on black ownership and hiring under the governments policy of black economic empowerment (BEE) designed to address the inequalities of the apartheid system that ended in 1994.

Northam said it will issue over 112 million new shares, representing 22 percent of its issued share capital, to an entity owned by black investors. The investors will also buy existing shares worth 9,4 percent, the company said.

The investors will pay R41 a share, a 15 percent premium to Northams closing price on Wednesday.

Unlike many BEE deals, where black investors acquire their stakes via loans, Northams investors will fund their deal by issuing preference shares for cash to two of Northams own shareholders, the Public Investment Corporation and Coronation Fund Managers.

The deal, worth R6,6 billion, will see Northam get a cash injection of R4,6 billion.

It will also bring its total black ownership to 35,4 percent, exceeding the governments minimum requirement of 26 percent for mining companies.

The agreement includes a ten year lock-up period meaning the black investors will retain their stake for at least a decade.

The black investors include community trusts and a group led by KB Mosehla, the chief executive of black investment company Mosomo Investment Holdings.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus