harmony investment merger united kingdom

Harmony Gold Mining Company has announced the successful completion of the placing announced on 24 June 2020.

A total of 60,278,260 new ordinary shares in Harmony have been placed with existing and new institutional investors at a price of R57.50 per share, raising gross proceeds of approximately R3.466 billion.

The proceeds of the Placing will be used by the Company to discharge the US$200 million consideration to acquire AngloGold Ashanti’s South African assets, Mponeng mine and Mine Waste Solutions. J.P. Morgan Securities acted as Sole Global Coordinator and Joint Bookrunner and Absa Bank acted as Joint Bookrunner in connection with the Placing.

The Placing Shares being issued represent, in aggregate, approximately 11.1% of the Company’s issued ordinary share capital before the Placing.

The Placing Price represents a discount of 5.4% to the closing share price on 24 June 2020 and a 3.5% discount to the 30 day VWAP, which complies with Section 5.52 of the Listings Requirements of the JSE Limited.

The Placing Shares, when issued, will rank pari passu in all respects with the existing Harmony ordinary shares, including the right to receive all dividends and other distributions declared, made or paid after the date of issue thereof.

An application will be made to the JSE Limited for the listing of the Placing Shares. Subject to approval by the JSE, listing and trading of the Placing Shares are expected to occur on the JSE on or around 30 June 2020 (or such later date as may be agreed between the Company and the
Bookrunners) and dealings in the Placing Shares will commence at the same time.

The Placing is conditional upon, amongst other things, Admission of the Placing Shares on the JSE becoming effective and the placing agreement between the Company and the Bookrunners not being terminated in
accordance with its terms prior to Admission.

Following Admission becoming effective, the Company’s issued share capital will comprise 603,142,706 ordinary shares. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their beneficial interest in, or a change to their beneficial interest in, the Company’s ordinary shares under Section 122 of the Companies Act.

Placing Shares purchased by persons outside of the United States must not be offered or sold into the United States or to any U.S. Person or deposited into the Company’s American depositary share programme until at least 40 days after settlement of the Placing.

Harmony has agreed, subject to certain exclusions, to a lock-up of 90 days from settlement of the Placing.

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Harmony CEO, Peter Steenkamp, comments:

“This successful placement is a validation of our investors’ support for Harmony’s stated strategy to safely grow quality ounces and increase margins, specifically through the acquisition of the Mponeng and Mine Waste Solutions assets.

“We intend replicating our success in South Africa, with decades of acquiring, operating, and extending the life of mines, and extracting additional value from mining operations.”

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