Panaf to buy R545m stake in SA, Shanduka Gold

May 26, 2016

PAN African Resources (Panaf) is to raise R363.1m through a bookbuild with shareholders in South Africa and the UK in order to part pay the R545.6m purchase of a 49.9% stake in Shanduka Gold.

Shanduka Gold is one of Panaf’s empowerment partners with a 23.8% stake in the company. It is controlled by Standard Bank (16.9%), Jadeite Limited (33.6%) and The Mabindu Business Development Trust (49.5%).

A transaction announced to the Johannesburg Stock Exchange (JSE) today confirmed that Panaf would buy shares in Shanduka Gold owned by Standard Bank – first announced in February – and added that it would also buy Jadeite’s stake in terms of a tag-along clause to the sale of Standard Bank’s shares. Mabinda will retain its stake in Shanduka Gold.

Panaf is therefore buying back a total of 49.9% in Shanduka Gold which takes account of an agreement allowing Jadeite to hold back 0.5% of its shares for disbursement at a later time provided it has Panaf’s approval.

Source: BDlive