| Mon 30 Apr 2001, 0:00 | | Northam Platinum - Announcement |
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Northam Platinum Limited
(Incorporated in the Republic of South Africa)
(Registration number 1977/003282/06)
("Northam")
An oddlot offer, the consolidation and sub-division of ordinary shares and an
increase in the authorised share capital of NorthamIntroduction
It was announced in the press on 20 April 2001 that Northam would be proposing
an oddlot offer. Currently 5 258 out of 8 816 shareholders hold less than 100
Northam shares ("oddlot holders"). In order to reduce the substantial recurring
administrative costs associated with this large number of oddlot holders, the
directors of Northam have proposed an oddlot offer and thereafter the
consolidation and sub-division of Northam's shares to facilitate the reduction
in the number of oddlot holders in Northam in an equitable manner.
The directors consider it necessary to increase Northam's authorised share
capital to provide for the future requirements of Northam. Accordingly, the
directors propose to increase Northam's authorised share capital from R2 500
000, divided into 250 000 000 ordinary shares of 1 cent each to R3 500 000,
divided into 350 000 000 ordinary shares of 1 cent each by the creation of an
additional 100 000 000 ordinary shares of 1 cent each.
The oddlot offer
All oddlot holders who are registered at the close of business on Friday, 4 May
2001 and who are still so registered at the close of business on Friday, 1 June
2001 are entitled to participate in the oddlot offer.
In terms of the oddlot offer, oddlot holders may up to 16:00 on 1 June 2001:
* elect to retain their oddlots or
* sell their oddlots at R12,27 per share ("the offer price") or
purchase a sufficient number of additional shares at the offer price in order
to increase their oddlot holdings to 100 shares.
The offer price has been determined by taking into account the average weighted
closing price of Northam's ordinary shares on the JSE Securities Exchange South
Africa over the 20 trading days ended 26 April 2001. Transaction costs
(including stamp duties in the event of oddlot holders electing to purchase
additional shares) will be for the account of Northam.
The consolidation and sub-division of Northam's ordinary shares
Subsequent to the closure of the oddlot offer, it is proposed that every 100
ordinary shares of 1 cent each will be consolidated into one consolidated share
of R1. This will result in oddlot holders who do not elect to retain their
oddlots, holdings fractions of consolidated shares. The fractions of
consolidated shares will be aggregated and sold on behalf of the oddlot holder
concerned. The oddlot holders will be paid the offer price per share held
prior to the consolidation. Immediately after the consolidation and the sale of
the aggregated fractions of consolidated shares, each consolidated share will
be subdivided into 100 shares of 1 cent each. The consolidation and
sub-division will have no effect on Northam's net asset value or earnings per
share.
Increase in the authorised share capital of Northam
The directors of Northam believe that the current state of flux and
re-organisation in the platinum mining industry will present opportunities for
Northam to acquire further operational assets. The directors, therefore,
consider it prudent to prepare for such possible acquisitions by increasing the
authorised share capital of Northam from R2 500 000, divided into 250 000 000
ordinary shares of
1 cent each to R3 500 000, divided into 350 000 000 ordinary shares of 1 cent
each by creating an additional 100 000 000 ordinary shares of 1 cent each.
General meeting
In order to give effect to the oddlot offer, the consolidation and sub-division
and the increase in the authorised share capital, a general meeting of
shareholders will be convened to take place at Investec, 2nd Floor, 100
Grayston Drive, Sandown on Friday, 1 June 2001 at 11:00.
Documentation
Documentation dealing with the oddlot offer, the consolidation and sub-division
and the increase in the authorised capital including a notice convening the
general meeting will be posted to shareholders on or about Wednesday, 9 May
2001.
Johannesburg
30 April 2001
Sponsor
Investec Securities Limited
Member of the JSE
(Registration number 1972/008905/06)
Attorneys
Bowman Gilfillan Inc.
Registration number 1998/021409/21
