Shanduka Group, a black-owned and controlled investment holding company, yesterday announced that it has acquired a 50.03% shareholding in Incwala Resources for a total of R2.8-billion.
Incwala, established in 2004, holds an 18% interest in Lonmin's two main operating subsidiaries, Western Platinum and Eastern Platinum, and a 26% stake in the Akanani platinum project.
The transaction will be financed by an unencumbered equity contribution of R300-million by Shanduka and vendor loan funding by Lonmin to the tune of R2.5-billion. Lonmin, the world's third-largest platinum producer, said yesterday that it would issue 9.65million new shares to fund Shanduka.
"Completion of the Shanduka offer will simplify the ownership structure of Incwala and create the basis for a long-term relationship between Lonmin and Shanduka as the single majority [historically disadvantaged] shareholder," said Lonmin.
Lonmin said securing a new black economic empowerment partner by means of a robust funding structure was "critical" to its future.
Just R20 for the first month. Support independent journalism by subscribing to our digital news package.