Johannesburg, South Africa — MININGREVIEW.COM — 10 March, 2008 – Anglo Platinum – the world’s largest primary producer of platinum – has reached consensus with its labour representative organisations on the key terms and structure of the company’s broad-based employee share participation scheme.
A weekend company announcement here confirms that it has established the Anglo Platinum Kotula Trust for an eight-year duration to facilitate the scheme on behalf of the beneficiaries, and will issue approximately 2.5 million shares to the Trust, representing approximately 1.0% of the company’s issued ordinary share capital.
The announcement adds that – following a thorough consultation process with its recognised unions, and to reduce the risk of share price volatility to the scheme, thereby ensuring that sustainable value is created for beneficiaries – Anglo Platinum has structured the scheme to include 40% fully facilitated shares through the issue of ordinary shares to the Trust. The proposed 1% Scheme is equivalent in cost to placing 1.5% of the company’s issued ordinary share capital into a Historically Disadvantaged South African trust on a 100% “A” Ordinary Share basis.
Beneficiaries of the trust include all permanent employees of Angloplat’s South African operations, including joint ventures.
Dividends will be paid out annually to the beneficiaries. In addition, beneficiaries will receive capital distributions at the end of years five, six and seven which may potentially be reinvested to provide ongoing benefits beyond the original term of the trust.
The expected cost of the scheme is approximately R1 803 million.