| Wed 20 Oct 2010, 8:00 | | VUN - Vunani completes 37.5% acquisition of Black Wattle - Platform for growth |
|
VUN
VUN
VUN - Vunani completes 37.5% acquisition of Black Wattle - Platform for growth
in coal mining industry.
VUNANI LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/020641/06)
JSE code: VUN
ISIN: ZAE000110359
("Vunani")
VUNANI COMPLETES 37.5% ACQUISITION OF BLACK WATTLE - PLATFORM FOR GROWTH IN
COAL MINING INDUSTRY.
Shareholders are referred to the announcement made on 14 July 2009 on the Stock
Exchange News Service (SENS), that Vunani Capital (Proprietary) Limited ("Vunani
Capital"), a subsidiary of Vunani, has entered into a Subscription and
Shareholders` Agreement ("the agreement") with Bisichi Mining (Exploration)
Limited ("Bisichi") and Black Wattle Colliery (Proprietary) Limited ("Black
Wattle").
Vunani Capital is pleased to announce that all the conditions precedent to the
above transaction have now been fulfilled and that the transaction has been
implemented with effect from 14 October 2010. Vunani`s effective shareholding in
Black Wattle is 37.5% with the balance held by Bisichi.
Black Wattle is a leading opencast colliery situated in the Witbank coalfields
close to Middelburg. The colliery produces high quality export steam coal, low
phosphorous metallurgical coal, and Eskom coal with total sales in excess of
1.40 million metric tonnes per annum.
Speaking about the transaction, Ethan Dube, Chief Executive Officer for Vunani
remarked:
"We are very excited about this coal mining investment. It provides a platform
from which to build both organically and by acquisition our interests in the
coal mining sector. Black Wattle is a leading independent opencast colliery in
South Africa with access to both the export and domestic markets.
Announcing the acquisition of the minority stake, Andrew Heller, Managing
Director, Bisichi Mining PLC stated
"Vunani is a leading publicly-listed black-owned and managed company and we are
very pleased that they have joined us as a partner in Black Wattle. We are proud
of our longstanding commitment to Black Economic Empowerment and we see this
transaction with Vunani as the first of many we will do together in South
Africa."
In terms of the transaction, Vunani Capital acquired 110 ordinary shares and 265
"A" ordinary shares in Black Wattle at par value, resulting in an effective
shareholding of 37.5% in Black Wattle.
The "A" ordinary shares will rank pari passu with ordinary shares save for a
restriction on the dividend right. "A" ordinary shareholders will be entitled to
dividends once the agreed amount of dividends to ordinary shareholders have been
distributed as specified in the agreement.
Sandton
20 October 2010
Lead Designated Adviser: Grindrod Bank Limited
Joint Designated Adviser: Vunani Corporate Finance
Date: 20/10/2010 08:00:10 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
