Commenting on the transaction, Steve Curtis, Caledonia CEO, says:
“I am pleased to report that Caledonia has concluded its transaction with Fremiro to increase Caledonia’s shareholding in Blanket to 64%.
“I would like to thank Fremiro for its support as a shareholder in Blanket during the last seven years and am confident that Fremiro, now as a significant shareholder in the company, will continue to be supportive of Caledonia’s business going forward.”
On November 6, 2018, Caledonia announced it had entered into a legally binding agreement with Fremiro Investments to purchase Fremiro’s 15% shareholding in Blanket.
Completion of the purchase required approvals from various Zimbabwean regulatory authorities, all of which have now been received.
The gross consideration for Fremiro’s shareholding in Blanket is $16.667 million which has been settled through the cancellation of the loan between Fremiro and the company which stood at $11.467 million as at June 30, 2018; and the issue of 727,266 new shares in Caledonia at an issue price of $7.15 per share, being the closing price on the NYSE American at August 17, 2018.
Consequently, Caledonia’s shareholding in Blanket is 64 per cent and Fremiro holds approximately 6.3% of Caledonia’s issued share capital.