NICOLE MORDANT and DARREN SCHUETTLER, Johannesburg | Monday 5.45pm
HARMONY Gold company said on Monday it has taken operational control of Randfontein Estates after a sweetened R862-million bid won the approval of Randfontein’s board.
”Randfontein, as of this morning, will be flying the Harmony flag,” Harmony CE Bernard Swanepoel told analysts at a briefing in Johannesburg.
He said Harmony acquired 34% of Randfontein’s issued share capital on Monday and he expects the improved offer to win close to 100% of the company, which has recommended shareholders accept Harmony’s new offer.
Harmony defeated a rival stock offer by Western Areas which is in turmoil after the shock weekend resignation of its deputy chairman Brett Kebble amid revelations of a probe into a secret share buying scheme he authorised.
Financial market regulators on Monday began unravelling the clandestine share-buying scheme that forced Kebble to quit key boards in his JCI stable.
Kebble resigned as deputy chairman of Western Areas and three other gold mines after admitting the authorisation of a loan, without approval by Western Areas’ board, to buy shares in Randfontein Estates to thwart the hostile bid.
The Financial Services Board, which investigates insider trading allegations, met with the bourse on Monday to discuss the controversial transaction.
There is speculation that the regulators could advocate strong action against Kebble.
Shares in JCI companies closely associated with Kebble slumped on Monday. JCI Gold lost 5% to 425 cents and parent Consolidated African Mines fell 15% to 58 cents.
Officials from Durban, which is chaired by Kebble’s father, Randfontein was to be a key cash generator for a new global gold mining company to be built around Western Areas and listed on the Toronto Stock Exchange. — Reuters