In spite of the huge publicity they attract, many BEE deals leave their intended beneficiaries with a huge debt burden to bear. But, bucking the trend, in Northam Platinum’s R6bn BEE deal, investors will issue preference shares for cash to two of Northam’s own shareholders, the Public Investment Corporation and Coronation Fund Managers.
The deal will result into over a third of the mid-tier platinum producer falling under black ownership.
In a press statement, Northam said it will issue over 112 million new shares, representing 22 percent of its issued share capital, to an entity owned by black investors. The investors will also buy existing shares worth 9,4 percent, the company said.
As part of the deal, Northam said it will issue over 112 million new shares, representing 22 percent of its issued share capital, to an entity owned by black investors. The investors will also buy existing shares worth 9,4 percent, the company said