Acquisition of R959.7 million of Zambezi preference shares
NORTHAM PLATINUM LIMITED
Incorporated in the Republic of South Africa
(Registration number 1977/003282/06)
Share code: NHM ISIN: ZAE000030912
Debt issuer code: NHMI
Bond code: NHM002 Bond ISIN: ZAG000129024
Bond code: NHM006 Bond ISIN: ZAG000158577
Bond code: NHM007 Bond ISIN: ZAG000158593
Bond code: NHM009 Bond ISIN: ZAG000158866
Bond code: NHM011 Bond ISIN: ZAG000159237
Bond code: NHM012 Bond ISIN: ZAG000160136
Bond code: NHM013 Bond ISIN: ZAG000162181
Bond code: NHM014 Bond ISIN: ZAG000163650
Bond code: NHM015 Bond ISIN: ZAG000164922
Bond code: NHM016 Bond ISIN: ZAG000167750
Bond code: NHM017 Bond ISIN: ZAG000167891
Bond code: NHM018 Bond ISIN: ZAG000168097
Bond code: NHM019 Bond ISIN: ZAG000168105
(“Northam” or the “group”)
ACQUISITION OF R959.7 MILLION OF ZAMBEZI PREFERENCE SHARES
Northam shareholders are referred to the announcement dated 3 April 2020 (“previous announcement”)
pertaining to, inter alia, the acquisition by Northam of preference shares in Zambezi Platinum (RF) Limited
(“Zambezi”) (“Zambezi preference shares”).
Northam is pleased to announce that, since the date of the previous announcement, it has acquired an
additional 11 717 037 Zambezi preference shares for a total cash consideration of approximately
R959.7 million (“ZPLP acquisition”). Following the ZPLP acquisition, Northam will hold 65 093 887 Zambezi
preference shares, representing approximately 40.71% of all Zambezi preference shares in issue.
As stated in the previous announcement, Northam’s acquisition of Zambezi preference shares will reduce
the preference share dividend expense and liability included in Northam’s consolidated financial statements,
as well as Northam’s potential financial exposure under the guarantee it provided to holders of Zambezi
preference shares, should the guarantee be called upon. Furthermore, should Zambezi redeem the Zambezi
preference shares through a distribution of ordinary shares in Northam (“Northam shares”) held by Zambezi,
then the redemption of the Zambezi preference shares held by Northam, at such time, will result in a
distribution of Northam shares to Northam, thereby reducing the number of Northam shares in issue.
The ZPLP acquisition has been fully funded through Northam’s internal cash resources.
The ZPLP acquisition is not a categorised transaction in terms of the JSE Limited Listings Requirements and
information relating thereto is provided for information purposes only.
Paul Dunne, Northam’s Chief Executive Officer said “Northam had set itself an ambitious internal target of
acquiring at least 40% of all Zambezi preference shares in issue in order to de-risk the company’s position
and to simultaneously return significant value to its shareholders through our unique empowerment
transaction. We are delighted to have achieved this target approximately halfway through the 10 year
structure. The group’s financial position remains strong amidst very challenging global economic times.”
2 July 2020
Corporate Advisor, JSE Sponsor and Debt Sponsor to Northam
Attorneys to Northam
Cliffe Dekker Hofmeyr Inc.
Date: 02-07-2020 05:24:00
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