AFT
AFT
AFT - Afrimat - Termination of agreement
Afrimat Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/022534/06)
Code: AFT ISIN: ZAE 000086302
("Afrimat")
Termination of the agreement relating to the issue of options to a consortium
led by Mvelaphanda Holdings (Proprietary) Limited ("the Mvela Consortium") to
acquire Afrimat ordinary shares
Shareholders are referred to the detailed announcement dated 3 July 2008,
referring to the introduction of the Mvela Consortium as a black economic
empowerment ("BEE") partner to Afrimat. Shareholders are advised that the
agreement entered into between Afrimat and the Mvela Consortium giving the Mvela
Consortium options to acquire Afrimat shares ("the agreement") has been
terminated by mutual consent.
Following the signing of agreement and the successful completion of the due
diligence process, global financial markets have come under extraordinary
stress. The recent uncertainty in capital markets has led to an increase in risk
premiums, resulting in higher costs of capital. Afrimat`s management as well as
the Mvela Consortium considered it appropriate to terminate the agreement after
careful consideration of the current economic environment.
Afrimat will continue to explore methods of increasing its BEE shareholding with
the ultimate objective to achieve 26% black ownership prior to 2014, as required
by the Mining Charter.
Shareholders are advised that a circular will not be posted to shareholders in
relation to the issue of options to the Mvela Consortium.
Johannesburg
22 October 2008
Corporate advisor and Sponsor: Bridge Capital Advisors (Pty) Limited
Attorneys to Afrimat: Webber Wentzel
Date: 22/10/2008 17:05:10 Produced by the JSE SENS Department.
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