SHAREHOLDER GREEN LIGHT:
Exxaro to weigh BEE listing plan
Exxaro will consider listing its new R12bn black economic empowerment (BEE) shareholding company on an exchange restricted to BEE trading, it says, after its shareholders gave the green light to its replacement scheme. The coal and heavy minerals miner’s proposal at the end of 2016 offended its major customer, power utility Eskom. This is to put in place a new BEE special-purpose vehicle to replace Main Street upon expiry of the 10-year lock-in. Under the new scheme, Exxaro’s black shareholding will fall to about 30% from above 51%. Eskom requires at least a 51% black shareholding from its suppliers and at the time complained that Exxaro was "showing Eskom the finger" and "did not even have the decency to engage on this matter". Exxaro said the new transaction maintained its status as one of the companies in SA with the highest levels of black shareholding, increased its free float to 70% from 60% and resulted in only 7.3% dilution on a value per share basis, below the norm for sche...
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