Keaton, Rutendo announce R150m flip transaction
JOHANNESBURG (miningweekly.com) – Coal producer Keaton Energy has inked a deal that will see Rutendo Mining exchanging its 26% shareholding in subsidiary Keaton Mining for 21.83% of the issued shares in Keaton Energy, the group said on Friday.
Rutendo would subscribe for 63.7-million fully paid Keaton Energy shares at R2.36 a share, equalling R150.6-million, while a cash payment of R6-million, payable in six equal interest-free monthly instalments, would be made to Rutendo Mining.
Keaton said in a statement that the purpose of the flip transaction was to give effect to an exchange agreement, that had arisen on the exercise of an exchange option by Rutendo Mining in terms of the original shareholders agreement between Keaton Energy, Rutendo and Keaton Mining, and to ensure that a certain number of Keaton Energy shares remained in the hands of black economic-empowerment (BEE) shareholders.
Rutendo would be restricted from trading in or disposing of any of the shares for three years.
“The Rutendo flip transaction enables Keaton Energy to retain and secure its BEE credentials on a group level, while providing Rutendo Mining access to a more liquid shareholding within the limits of the contractually agreed share restriction provisions,” Keaton noted in a statement.
The deal remained subject to approval by Keaton Energy and Rutendo shareholders, with the JSE and Keaton Mining having obtained Investec Bank’s approval, in accordance with the facility agreement between Keaton Mining and Investec.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...
VISIT SHOWROOM
FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
