Image credit: Petra Diamonds
It said more than 95% of shareholders backed a resolution that includes reducing authorised share capital of the company by cutting the nominal value of all ordinary shares from 10p to 0.001p.
The company's authorised share capital will be increased through the creation of 8.5-million ordinary shares and the authorisation for directors to allot ordinary shares up to £88,447.
Petra said the proposed restructuring effective date will occur following satisfaction of certain conditions to the consensual restructuring, including the obtaining of regulatory approval from the financial surveillance department of the South African Reserve Bank to implement the consensual restructuring.
Petra had commenced a formal sale process for the group or its assets in June 2020 as it was saddled with the $650 million debt.
However, it later decided to conclude the formal sale after as it had not produced any offers for the group or its assets that were considered to be a viable alternative to the restructuring in terms of improving the company's capital structure.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
