JSE-listed Afrimat announced on Wednesday that it would provide funding to the Afrimat Black Economic-Empowerment (BEE) Trust to buy the about 6.4-million Afrimat shares held by BEE shareholder, the Mega Oils special purpose vehicle (SPV).
Mega Oils SPV indicated that it would not retain the shares once the seven-year lock-in period ends in November.
The BEE deal with Mega Oils SPV was initially entered into in August 2006.
The Afrimat BEE Trust would buy the shares at R6.18 a share.
The transaction would be funded from existing cash reserves.