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Pan African Resources builds finance to fund Jadeite buyout

Published: 21:10 26 May 2016 AEST

African miner in full gear
The buyout would enable the group to partner with BEE group Mabindu

South African gold miner Pan African Resources plc (LON:PAF) has teed £15.9mln of finance in the event it has to buy out Jadeite’s 33.6% interest in Shanduka Gold.

The transaction will allow the group to correct possible dilution of its black economic empowerment (BEE) ownership, it said in the statement.

The buyout would enable the group to partner with BEE group Mabindu, which currently owns a 49.5% interest in Shanduka Gold.

In February, the group entered into an agreement with the Standard Bank of South Africa (SBSA) to acquire its 16.9% interest in Shanduka Gold Proprietary Limited.

Pan African was required to make an offer to acquire Jadeite’s Shanduka Gold shares as part of the initial agreement and has put R545.6mln (£23.9mln) on the table.

The funding was arranged through a book build R3.25 (14.25p) per share but is conditional on the Jadeite offer being accepted.

This vendor placing will represent approximately 5.7% of the enlarged share capital of the company.

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