South Africa – The Northam Platinum BEE deal, worth R6.6-billion, was approved by an overwhelming number of shareholders on Thursday .
The Northam Platinum BEE deal, in addition to a previously concluded equity raising of R4.6-billion, will increase the ownership levels by historically disadvantaged South Africans (HDSA) in the company to 35.4%.
As a result of these transactions, HDSA shareholders will hold a 31.4% collective interest in Northam’s issued share capital. Combined with the existing HDSA profit share of 4% by way of the Toro Trust, the total HDSA benefits in Northam would rise to 35.4%, providing long-term headroom.
This 10-year security of HDSA ownership will ensure that Northam exceeds the minimum Mining Charter equity requirements of 26%, and ensure that it is well-positioned in the sector as a potential HDSA partner for further transactions.
To ensure immediate economic participation by the HDSA shareholders and in the interests of securing lock-in agreements with the HDSA shareholders wherein they undertake not to compete with Northam, nor to dispose of or encumber their interests for a period of 10 years, the HDSA participants will realise immediate economic benefit of R400 million.
Upon completion of the transaction, which took place on Thursday, Northam will receive unencumbered funds, net of costs, in excess of R4-billion.
Northam CEO Paul Dunne said: “Northam is delighted to announce the approval of our landmark BEE transaction. Northam appreciates the overwhelming shareholder support. The exceptionally high shareholder turnout confirms the importance of this transaction to Northam’s shareholders and the deep level of support for the transaction.”
More than 91% of Northam’s shareholders voted on the resolutions. The resolutions, which are essential to the implementation of the proposed black economic empowerment transaction, received shareholder approvals of between 98.6% and 99.1%.