Northam adds to its Zambezi pref shares
- 30 Aug 2019
Johannesburg, 30 August 2019. Northam is pleased to announce the acquisition of 13 700 000 Zambezi preference shares, bringing its holding of preference shares to 19 408 458, representing 12.1% of all Zambezi preference shares in issue. Northam has acquired these Zambezi preference shares from the PIC for a cash amount of R1.007 billion. The acquisition will be funded by Northam’s cash reserves.
This announcement follows on the previous advisory to shareholders dated 6 August 2019 and will be beneficial to Northam shareholders:
- the transaction will reduce the preference share dividend expense and liability included in Northam’s consolidated financial statements;
- it will also reduce Northam’s potential financial exposure under the guarantee it provided to holders of Zambezi preference shares, should the guarantee be called upon; and
- should Zambezi elect to 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 reducing the number of Northam shares in issue.
Northam CEO Paul Dunne said today, “Zambezi’s structure presents a very compelling and powerful way for Northam to return value to shareholders through the purchase of the Zambezi preference shares.”
Issued by R&A Strategic Communications
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Marion Brower 071 493 0387