Northam Platinum concludes takeover of Zambezi scheme

Northam Platinum has finalised the takeover of the Zambezi Scheme, and the deal should become effective August 23.
The Zambezi Scheme includes the Kariba HPP complex and any new dams, reservoirs and installations that may be constructed or installed on the Zambezi River with the consent of the Zambezi River Authority (ZRA), which operates this hydroelectric complex by decision of the Zambia and Zimbabwe parliaments.
Company chief executive Paul Dunne said Northam’s acquisition of the remaining Zambezi Preference Shares will have a positive impact on earnings a share and represents the final step in Northam’s Zambezi Preference Share acquisition strategy, which is a key element of their broader strategy to return value to shareholders.
“We are excited to have achieved this significant milestone and look forward to implementing the remainder of the transaction steps to finalise a very significant share buyback,” he said.
The platinum group metals miner received approval for the merger from shareholders on July 20.  
The transaction was implemented by way of the Zambezi scheme and the subsequent delisting of shares from the main board of the JSE.
Northam had also proposed a 15-year extension of the BEE transaction, including Northam Holdings’ proposed acquisition of all of the Northam shares in issue (excluding treasury shares), in exchange for the Northam scheme consideration.
The proposed Extended BEE Transaction will restore ownership by historically disadvantaged persons in Northam to up to 26.5% (net of treasury shares), with an emphasis on participation by Northam group employees and host and affected communities.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished