News Release
JSE code: TSX
Namibian code: NSX
ISIN code: ZAE000018552 Date: 13 November 2001
Trans Hex shareholders approve Mvela transaction
Mvelaphanda Holdings (Mvela) will increase its stake in Trans Hex to 19,4%
following unanimous shareholder approval to issue 16 million unsecured
convertible debentures to the empowerment group for R152 million in cash.
The transaction - when combined with a second, and unrelated, deal by Mvela
to purchase an additional five million Trans Hex shares from Remgro - will
increase Mvela's ownership to 24,5%.
"This is a win-win development," explains Bernard van Rooyen, Trans Hex
chairman. "Mvela now has a sizeable chunk in one of the world's leading
alluvial diamond miners. In return Trans Hex has received a cash injection
to fund investments in recent land and marine expansions. More importantly,
we have acquired a meaningful empowerment partner - a critical element for
conformity with the proposed Minerals and Petroleum Resources Development
Act."
The debentures have been issued at a price of R9,50 - representing an 11%
premium to the 60-day weighted average quoted price on the JSE for the 60
days immediately prior to the publication on 15 December 2000 of the first
cautionary notice relating to the transaction.
According to Mvela chairman Tokyo Sexwale, the transaction places Trans Hex
in a strong position to take advantage of future growth opportunities.
Funding, the final condition precedent to the transaction, will be finalised
upon the reverse listing of Mvela's' mining interests through East
Daggafontein Mines Limited.
Investec Bank Limited, appointed to evaluate the proposed transaction, have
deemed the terms and conditions to be fair and reasonable for Trans Hex
shareholders.
"Notwithstanding the challenges the luxury goods market in general faces at
the moment, this transaction is undoubtedly good news for Trans Hex,"
concludes van Rooyen.
Ends.
For further information: Bernard van Rooyen
Trans Hex Group
082 659-1421
Issued by:
For Trans Hex for Mvela
Cullum Johnston Marion Brower
021 683-2685 / 083 212-2455 011 880-3924 / 083 307-6754
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