Goldplat Recovery South Africa - 100% BEE Transaction Update
August 21, 2013 Article Source
Goldplat plc, the AIM listed gold producer in Africa, is pleased to announce that its South African gold recovery subsidiary, Goldplat Recovery (Pty) Limited ('GPL') has signed a binding Memorandum of Agreement ('MoA') with its Black Economic Empowerment ('BEE') partner Amabubesi Property Holdings (Pty) Ltd ('Amabubesi') to increase Amabubesi's interest in GPL from 15% to 26% as required by the South African BEE legislation to be in place before 1 May 2014.
The terms of the MoA will see Amabubesi acquire a final 11% interest in GPL for a total consideration of ZAR 29,503,483 (£2,107,392), with a 10% upfront cash payment on completion. The remaining 90% will be Vendor Financed by GPL with Amabubesi repaying the loan using its pro-rata dividends. This transaction values GPL at ZAR 268,213,481 (£19,158,105).
Goldplat's CEO Russell Lamming said, "We are delighted to have signed this binding MoA with our BEE partners, ensuring our market leading South African gold recovery operation is 100% BEE compliant well in advance of the 1 May 2014 deadline. Amabubesi have been very supportive shareholders since their initial acquisition in 2008 and we look forward to continuing this relationship into the future. Interestingly, the transaction, which values GPL at approximately £19 million, gives a current see-through value for the 85% of GPL we own of circa £16 million or a Goldplat share price of 10p. Taking into account the fact that GPL contributed less than 50% of the group net profit in the last financial year, this highlights the inherent value of Goldplat as a whole."