Northam buys more Zambezi Platinum preference shares
Northam prefers to buy back the preference shares with excess cash rather than pay dividends
Northam Platinum has bought additional Zambezi Platinum preference shares for R804.6m, bringing its total shareholding up about six percentage points to 46.7%.
Northam issued the shares in a R4bn empowerment transaction in 2015, and has previously preferred to buy back the preference shares with excess cash rather than pay dividends, thus reducing its exposure to the instrument when they are redeemed in 2025.
The JSE-listed preference shares, due for redemption in cash an/or shares in May 2025, attract dividends equal to the prime lending rate in SA plus 3.5%.
After the transaction, Northam will hold about 74.7-million Zambezi preference shares.
The value of Northam-owned preference shares was worth R5.96bn on August 17, the group said.
With Allan Seccombe
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