Go Back Email this Link to a friend


Wsl - Wescoal - New Bee Investor For Wescoal: Sale Of Shares To Bee Investor

Release Date: 20/11/2007 13:20:10      Code(s): WSL
WSL - Wescoal - New BEE investor for Wescoal: sale of shares to BEE investor    
general issue of shares for cash to bee investor appointment of BEE directors   
WESCOAL HOLDINGS LIMITED                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1998/004365/06)                                           
(JSE code: WSL   ISIN: ZAE000069639)                                            
("Wescoal" or "the company")                                                    
NEW BEE INVESTOR FOR WESCOAL:                                                   
SALE OF SHARES TO BEE INVESTOR                                                  
GENERAL ISSUE OF SHARES FOR CASH TO BEE INVESTOR                                
APPOINTMENT OF BEE DIRECTORS                                                    
1    Introduction                                                              
 Shareholders were advised on Sens on 29 June 2007 that Wescoal`s Black         
 Economic Empowerment ("BEE") investor at the time has terminated its           
 involvement with Wescoal and sold its shares to Wescoal`s major shareholders.  
Shareholders are advised that the major shareholders of Wescoal, including     
 the directors of Wescoal, have sold 33 217 703 ordinary shares in Wescoal to   
 Waterberg Portion Property Investments (Pty) Limited ("WPP"), the new BEE      
 investor ("sale of shares") at 107 cents per share..                           
In addition, Wescoal will in terms of a general issue of shares for cash,      
 issue 5 000 000 shares to WPP at 107 cents per share. This would result in     
 WPP owning 34,5% of Wescoal.                                                   
2    Background on BEE Investor                                                 
WPP is a black economic empowerment company operating in the minerals and   
    energy space. The major shareholders of WPP are Mr Muthanyi Robinson        
    Ramaite, Mr Mpumelelo James Sikhosana and Mr Eric Mzimela. Mr Ramaite,      
    Chairperson of WPP, is a former Director General of the Department of       
Public Service and Administration and sits on a number of boards of         
    directors of other listed companies.                                        
    The major shareholders of WPP have been involved in mining for the last     
    five years. They are participants in the Khumama consortium that sold 50%   
of the Booysendal platinum project to Mvelaphanda Resources as well as part 
    of the BEE consortium of Eland Platinum Holdings. WPP is the majority owner 
    of Vuselela Mining which holds several mineral rights for platinum,         
    manganese, iron ore and coal. The coal rights are located in Mpumalanga,    
Waterberg and KwaZulu-Natal. The vision is to prospect these rights and     
    ultimately to sell them into Wescoal in line with Wescoal`s stated strategy 
    to source its own coal reserves in the medium term.                         
 2    Rationale for the sale of shares and the general issue of shares for cash 
Wescoal has since its listing in 2005 made BEE a core strategy for the         
 company. The sale of shares by the major Wescoal shareholders, including the   
 directors of Wescoal, to WPP and general issue of shares for cash to WPP will  
 result in a 34,5% BEE shareholding in Wescoal. The company`s enhanced BEE      
profile is expected to result in an increase in business from its current      
 customers and to assist in its drive to expand its mining operations.          
 The cash raised will be utilised for the payment of the acquisition of the     
 coal businesses of Express Technology CC and Atlantis Coal CC ("Express        
Acquisition") as announced on 15 November 2007, as well as working capital     
 requirements.                                                                  
4    Details of the sale of shares                                              
    As part of the BEE initiative and to ensure that WPP obtains a meaningful   
shareholding in Wescoal, the main shareholders, including directors in      
    Wescoal, have agreed to sell 33 217 703 ordinary shares in Wescoal to WPP   
    at 107 cents per share, for a total consideration of R 35 542 942.          
In compliance with rule 3.63 to 3.65 of the JSE Listing Requirements, the       
following disclosures are made:                                                 
Name of director:             AR Boje                                           
Date of transaction:          16 November 2007                                  
Nature of transaction:        Sale                                              
Price:                        107 cents per share                               
Number of shares:             6 174 472                                         
Total amount:                 R 6 606 685-00                                    
Class of security:            Ordinary shares                                   
Nature of interest:           Direct beneficial                                 
Clearance obtained:           Yes                                               
Name of director:             AR Boje                                           
Date of transaction:          16 November 2007                                  
Nature of transaction:        Sale                                              
Price:                        107 cents per share                               
Number of shares:             3 240 000                                         
Total amount:                 R 3 466 800-00                                    
Class of security:            Ordinary shares                                   
Nature of interest:           Indirect non-beneficial                           
Clearance obtained:           Yes                                               
Name of director:             JG Pansegrouw                                     
Date of transaction:          16 November 2007                                  
Nature of transaction:        Sale                                              
Price:                        107 cents per share                               
Number of shares:             884 000                                           
Total amount:                 R 945 880-00                                      
Class of security:            Ordinary shares                                   
Nature of interest:           Indirect beneficial                               
Clearance obtained:           Yes                                               
In compliance with rule 3.63 to 3.65 of the JSE Listings Requirements, the      
following information relating to ordinary shares sold to WPP by directors of   
Wescoal`s major subsidiary, Chandler Coal (Pty) Limited are disclosed, as       
follows:                                                                        
Name of director:             G Botha                                           
Date of transaction:          16 November 2007                                  
Nature of transaction:        Sale                                              
Price:                        107 cents per share                               
Number of shares:             4 680 000                                         
Total amount:                 R 5 007 600-00                                    
Class of security:            Ordinary shares                                   
Nature of interest:           Direct beneficial                                 
Clearance obtained:           Yes                                               
Name of director:             G Coetzee                                         
Date of transaction:          16 November 2007                                  
Nature of transaction:        Sale                                              
Price:                        107 cents per share                               
Number of shares:             6 180 000                                         
Total amount:                 R 6 612 600-00                                    
Class of security:            Ordinary shares                                   
Nature of interest:           Direct beneficial                                 
Clearance obtained:           Yes                                               
Name of director:             D Joubert                                         
Date of transaction:          16 November 2007                                  
Nature of transaction:        Sale                                              
Price:                        107 cents per share                               
Number of shares:             2 600 000                                         
Total amount:                 R 2 782 000-00                                    
Class of security:            Ordinary shares                                   
Nature of interest:           Indirect beneficial                               
Clearance obtained:           Yes                                               
5    General issue of shares for cash                                           
As part of the BEE initiative Wescoal has agreed with WPP to subscribe for  
    5 000 000 ordinary shares in Wescoal at 107 cents per share, for a total    
    cash consideration of R5 250 000 in terms of a general issue of shares for  
    cash ("general issue"). The implementation of the general issue is subject  
to the Competition Commission approving the Express acquisition announced   
    on 15 November 2007 by no later than 28 February 2008.                      
                                                                                
    The issue price represents a premium of 26,2% to the weighted average       
traded price of Wescoal shares for the 30 trading days ended 15 November    
    2007, being the day before the price was agreed with WPP.                   
    No financial effects are disclosed as the value of the issue for shares is  
    less than 5% of the market capitalisation of Wescoal. The pro forma effect  
on the net assets and net tangible assets per share, and earnings and       
    headline earnings per share is insignificant.                               
6    Directors appointment                                                      
    Messrs Muthanyi Robinson Ramaite and Mpumelelo James Sikhosana have been    
appointed to the board of directors of Wescoal with effect from 20 November 
    2007.                                                                       
Johannesburg                                                                    
20 November 2007                                                                
Designated Adviser                                                              
Exchange Sponsors (Pty) Limited                                                 
Date: 20/11/2007 13:20:10 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          



                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2017 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.