AFT
AFT
AFT - Afrimat - Afrimat BEE Trust Acquires 15.8% Interest In Afrimat
Afrimat Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/022534/06)
Code: AFT ISIN: ZAE 000086302
("Afrimat" or "the Company")
AFRIMAT BEE TRUST ACQUIRES 15.8% INTEREST IN AFRIMAT
Reflecting Afrimat`s commitment to transformation, the Company has facilitated
the acquisition of 22 700 000 Afrimat ordinary shares ("Shares") by the Afrimat
BEE Trust ("the Trust"). Afrimat Empowerment Investments (Pty) Limited ("AEI"),
an entity owned entirely by the Trust, has entered into an agreement to acquire
13 200 000 Shares, previously held by BEE shareholders, for a consideration of
R35 904 000 (R2.72 per Share), and has subscribed for 9 500 000 new Shares for a
consideration of R27 075 000 (R2.85 per Share) (collectively "the Transaction").
Afrimat has facilitated the Transaction through the subscription of 1000
Redeemable Cumulative Participating Preference Shares in AEI ("Pref Shares") for
a total subscription price of R63 985 805. The Pref Shares will carry a coupon
equivalent to 70% of the prime lending rate.
Afrimat intends to repurchase Shares in order to reduce the dilutionary impact
of the new Shares being issued to AEI. To date 1 732 538 Shares have been
repurchased and further Shares will be repurchased when surplus cash is
available.
In addition, pursuant to the Transaction black ownership in Afrimat will equate
to 26.1%, achieving the Mining Charter`s requirement of 26% black ownership well
in advance of the 2014 deadline. This will help ensure both the retention of
existing mining rights as well as the granting of new mining rights which are
integral to the success of the Company.
Previously disadvantaged individuals account for 82% of Afrimat`s 1400-strong
workforce. The Transaction will enable Afrimat to retain and reward key staff by
encouraging black staff members to build up a shareholding in the Company,
thereby aligning the interests of staff with those of the Company`s
shareholders.
Johannesburg
31 August 2009
Corporate Advisor and Sponsor: Bridge Capital Advisors (Pty) Limited
Legal Advisor: Webber Wentzel
Date: 31/08/2009 17:35:02 Produced by the JSE SENS Department.
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