Empowerment group Mvela Resources on Monday announced that it would finalise its recent R1,79-billion private placement within a week. The proceeds of the private placement will be used to fund the R4,139-billion acquisition of a 15% interest in Gold Fields’ South African gold mining assets and business operations.
The issue price of R23 was determined following a domestic and international road show, which commenced on February 16 and ended at the close of business on March 5.
The issue price represents a discount of 7,1% to the closing price of Mvela Resources shares on the JSE Securities Exchange South Africa on Friday, March 5.
“The private placement was well supported domestically and internationally and was oversubscribed,” Mvela said in a statement.
The private placement is expected to be finalised by 8.30am on March 15 and the new shares will commence trading on the same day.
Rand Merchant Bank Corporate Finance, RBC Capital Markets and JPMorgan, are
acting as joint book runners and underwriters.
The underwriters may elect to exercise an over-allotment option up to a maximum of 7,782 million Mvela Resources shares. – I-Net Bridge