Goldplat signs over another 11% of South African business
June 18, 2013 Article Source
Goldplat (LON:GDP) has signed a deal that will see Amabubesi Property Holdings take more than a quarter of its South African gold recovery business as part of the country’s Black Economic Empowerment (BEE) law.
The legislation, aimed at redressing the inequalities of Apartheid, required Goldplat to sign a binding memorandum of agreement (MoA) with its BEE partner before 1 May 2014.
It sees Amabubesi increase its stake from 15% to 26% for a total of £2.1mln, with 10% of the sum paid up front in cash. The rest will be vendor financed by Goldplat Recovery, the South African business, with Amabubesi repaying the loan using its pro-rata dividends.
Chief executive 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.”