London-listed Aquarius Platinum, 8% held by Impala Platinum (Implats), on Monday announced that it is on track to complete its transaction with the Savannah empowerment consortium by September.
Aquarius also announced that three South African funding institutions have committed a total of R845-million to the Savannah consortium, which completes the deal’s funding requirements.
The Savannah consortium will come up with R15-million of its own funds to complete the total funding for the transaction of R860-million.
The Savannah consortium will acquire 29,5% of Aquarius Platinum South Africa, exchangeable in the future for about 23% of London-listed Aquarius Platinum at R34,96 per share.
The completion of the empowerment transaction will provide Aquarius with the funding to start with the immediate development of the Everest project, which will produce 220Â 000 troy ounces of platinum group metals per year from mid-2006.
The three institutions funding the transaction are the Development Bank of Southern Africa (DBSA), the Industrial Development Corporation (IDC) and a third financial institution that remains unnamed due to confidentiality conditions.
The IDC will contribute R400-million to the transaction, the DBSA R245-million and the third financial institution R200-million.
The Savannah consortium comprises Savannah Resources, Chuma Holdings and Malibongwe. Following the completion of the transaction, Savannah Resources will hold 15,773-million shares in Aquarius Platinum South Africa, Chuma Holdings will hold 6,31-million shares and Malibongwe 2,517-million shares.
The weaker Aquarius share price due to the rand strength against the United States dollar, investment uncertainties relating to the region and the Savannah empowerment deal have resulted in a repricing of the transaction.
In terms of the revised arrangements, the Savannah consortium will acquire 29,5% of Aquarius Platinum South Africa through the payment of R860-million, which will — subject to regulatory approvals — convert into 24Â 599Â 542 new Aquarius shares, or about 23% of the company on a diluted basis.
The prior agreement announced in December 2003 saw, for the same cash injection, Savannah consortium subscribe for 26% of Aquarius Platinum South Africa, converting to 22Â 733Â 280 new Aquarius shares.
The issuing of new shares by Aquarius Platinum South Africa to the Savannah consortium will result in the dilution of the existing shareholders, namely Aquarius and Implats.
Implats has approached Aquarius requesting an option to raise its equity holding in Aquarius Platinum South Africa back to 20% as part of the transaction. — I-Net Bridge