Platinum miner Northam Platinum has increased its shareholding in Zambezi Platinum to 87.5%.
Northam reached an agreement with the Public Investment Corporation to acquire over 9.8-million Zambezi shares for R966.3-million.
Following implementation of the acquisition, Northam will hold more than 139.9-million Zambezi preference shares.
Northam’s acquisition of Zambezi preference shares will reduce the preference share dividend expense and liability included in Northam’s consolidated financial statements, as well as Northam’s potential financial exposure under the guarantee it provided in favour of the holders of Zambezi preference shares.
Further, should Zambezi redeem the Zambezi preference shares through a distribution of ordinary shares in Northam held by Zambezi, then the redemption of the Zambezi preference shares held by Northam will result in a distribution of Northam shares to Northam, thereby reducing the number of Northam shares in issue.