Northam sells its stake in Trans Hex
Johannesburg, 09 May 2016. Northam is pleased to advise that it has disposed of its 20.3% stake in Trans Hex Group Limited (Trans Hex), a listed diamond producer.
“The disposal of this non-core holding is in line with Northam’s strategy of rationalising its asset portfolio, and focusing on growing its PGM business into shallow, mechanisable orebodies,” comments Northam chief executive Paul Dunne.
The transaction has realised a total cash consideration of R81.8 million for the company, which represents a 7.6% premium on the 30 day volume weighted average price of a Trans Hex share on the day prior to the transaction. The funds will be allocated towards developing the company’s internal project pipeline.
Note to editors
Northam’s stake in Trans Hex dates back to 2011 with the unbundling of Mvela Resources Limited. In terms of the transaction Mvela Resources became a wholly-owned subsidiary of Northam and was delisted from the JSE.
In terms of the offer Northam acquired Mvela Resources’ remaining assets, which included a 20.3% stake in Trans Hex.
For further information:
Russell and Associates, Johannesburg +27 11 880 3924
Marion Brower: 071 493 0398
Jan Walker: 071 493 0429
9 May 2016