Northam Platinum Limited (Northam) an independent integrated PGM producer listed on the JSE, on the 23 March 2021 announced a 15-year extended empowerment transaction and it would be wounding up its current Zambezi Platinum black economic empowerment (“BEE”) deal.
In the transaction scheme documents Northam informed shareholders the 15-year extended empowerment transaction would place an emphasis on the participation by employees and communities.
The transaction would see Northam empowering its employees and communities by providing them with a 23 percent ownership in the company, with other historically disadvantaged people, including women and youth groups, participating in the balance through a new empowerment vehicle to be listed on the JSE’s BEE segment.
The 15-year extended BEE transaction was valued at R33.1 billion based on the current share price of Northam at the time and the deal would be funded entirely by the Northam group.
On 30 June 2021 Northam held its general meeting and the company shareholders approved the BEE deal by an overwhelming 99.9 percent approval.
Paul Dunne, Northam’s Chief Executive Officer, commented “The benefits of this landmark transaction have been confirmed by the overwhelming support that Northam has received with 99.9% shareholder approval. We are immensely grateful for the support that Northam continues to receive from its shareholders and the Board and Management remain committed to proactively creating and delivering shareholder value following a share buy-back in excess of 25%. The Zambezi transaction transformed Northam in many respects and the composite transaction positions Northam very well for the future. We look forward to the remaining conditions being fulfilled and to execute on the mandate given by Northam shareholders today.”