WESCOAL, the junior coal company, has reached an agreement with its existing black shareholders to increase their combined stake in the company to 59%, injecting about R178.1m of fresh equity and enabling Wescoal to meet its commitments to Eskom.Eskom requires its coal suppliers to be more than 50% black-owned. About 80% of Wescoal’s production is currently supplied to Eskom.The company said on Thursday that its existing black shareholders, including chairman Robinson Ramaite, Simeka Capital and Eric Mzimela, would form a special purpose vehicle (SPV) into which they would inject their current stakes, equivalent to 37% of the company’s issued shares, and subscribe for 124-million new shares at a total cost of R211.4m.The new shares would be issued to the SPV at about 169c each, representing a 10% discount to the 30-day volume-weighted average price. The SPV consortium has signed a five-year agreement which restricts their ability to dispose of the shares.The Industrial Development C...
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