Northam Platinum has announced that Eurasian Natural Resources divested its stake of 13% in the company less than ten days before the company’s shareholders are due to vote on a plan to raise $376m.
According to the company, 51 million shares were placed with institutional investors at 48.25 rand each in a transaction worth ZAR2.5bn ($204m).
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Based on data compiled by Bloomberg, ENRC, which was delisted from London exchange after its founders and the Kazakh Government took it private in 2013, was the second-largest shareholder of Northam.
A review by ENRC found the stake represented a non-core asset and resolved to dispose of in an orderly manner and inform Northam of this intention.
On March 19, Northam shareholders will vote whether to approve a plan to raise black South Africans’ stake in the company through the sale of ZAR4.6bn of stock.
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Furthermore, black investors plan to acquire stake from the South Africa’s fund manager Public Investment, for ZAR2bn ($162m), increasing their holding to 35.4%.
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By GlobalDataAccording to South African legislation, all mines should be at least 26% held by black shareholders.
Northam Platinum chief executive officer Paul Dunne said: "We are very pleased to again see the strong institutional support for Northam in a difficult platinum market. It is also very positive to see that this support extends to Northam’s BEE transaction."
Image: Northam Platinum mining operations. Photo: courtesy of ENRC.
