Mining group Assore and Shanduka Resources on Tuesday announced the conclusion of a R2.7-billion broad based black economic empowerment (BEE) transaction.
In terms of the transaction, Shanduka sold its 11.8% interest in Assore at a price of R163 per share to Main Street 343, a special purpose vehicle owned by two independent empowerment trusts set up by Assore.
The transaction would be effected by warehousing the Shanduka equity block, the company said, adding that this would allow for greater speed and execution certainty for both Assore and Shanduka.
It also allowed for time to consider and refine the details of the second phase of the transaction with regards to the broad-based beneficiaries of the BEE trusts set up by Assore.
“Our investment philosophy is to partner with companies in order to play a meaningful role in maximising growth and profitability,” said Shanduka chief executive Phuti Malabie.
“As Assore’s empowerment partner, we enjoyed a long and fruitful relationship and through this transaction, we are pleased to help facilitate further empowerment. At the same time, Shanduka is creating an opportunity for itself to diversify its interests and to redeploy transaction proceeds into other South African investment opportunities,” said Malabie.
Shanduka’s investment in Assore in 2005 has yielded attractive returns to the company and its shareholders, including several broad-based beneficiaries.
Assore will ask its shareholders to approve the transaction in August 2011. — I-Net Bridge