Village Main Reef Gold Mining, the last surviving listing of one of the original central Witwatersrand gold mines, on Tuesday announced that it had received a firm intention from To the Point Investments to make an offer for the rest of its shares.
To the Point Investments last week acquired an additional 37,8% stake in Village, taking its total investment to 47,8% of Village’s issued share capital.
Increasing its stake above 35% means that To the Point is now obliged to make a mandatory cash offer to minority shareholders.
“To the Point Investments sees a great opportunity to rebuild Village and make it the next-generation resources company while unlocking value for Village’s current and future shareholders,” Village said in a statement to the JSE.
While the additional stake in Village was purchased for R1,1-million, or 46,02 cents a share, from Harmony Gold, To the Point intends to double its offer to R1 a share.
To the Point Investment is a subsidiary of To the Point Growth Specialist Investments — a company founded by former Harmony boss Bernard Swanepoel, who was made a director of Village following To the Point’s increased investment.
Shares in Village soared on news of Swanepoel’s involvement in the company.
The shares closed 243,75%, or 78 cents, up at R1,10 on Friday from a close of just 32 cents on Thursday.
This has helped Village shares gain a staggering 733% or R2,20 this month alone, but the shares fared less well on Tuesday, being down 37,5%, or R1,50, at R2,50 by 4pm. — I-Net Bridge