Mvelaphanda rights issue holding up Gold Fields deal
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THE R4,1bn deal between Gold Fields and Mvelaphanda Resources for the sale of 15% in Gold Fields SA's operations to empowerment company Mvelaphanda moved a step closer on Friday, but the vital rights issue by Mvelaphanda to raise the money it needs to pay for the stake has yet to be completed.
Much of the detail of the financial structure of the deal was announced last year.
On Friday, Mvelaphanda and the various financiers including the Industrial Development Corporation and International Finance Corporation signed the final and definitive agreements governing the financing of the transaction.
"We are now ready to mail the circulars to shareholders for them to make the final decision about the transaction and, thereafter, for Mvelaphanda to complete the equity raising. We are confident that the transaction will be completed as planned," said Nick Holland, chief financial officer of Gold Fields on Friday.
Mvelaphanda said it planned to raise nearly R1,7bn through a rights offer to its own shareholders. Shareholders of both Mvelaphanda and Gold Fields would vote on the transaction early next month.
Feb 16 2004 08:17:39:000AM Julie Bain Business Day 1st Edition
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