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Northam announces repurchase of 3.9 percent of Northam Holdings shares

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Northam Platinum Holdings Limited has announced the repurchase of 3.9 percent of the Northam Holdings shares in issue, and a further reduction in the issued share capital.

On Monday, 20 September 2021, Northam Platinum Holdings Limited announced to its shareholders that it has accepted an irrevocable, unconditional offer from the Relevant Zambezi Shareholders to acquire, in aggregate, 14.6 million Northam Holdings shares. These shares reportedly represent 3.9 percent of the total issued share capital of Northam.

This will be for a purchase of consideration of R165.29 per Northam Holdings Share. The purchase price of the shares is said to represent a 16.1 percent discount to the 30-day VWAP of a Northam Share as of 17 September 2021. Furthermore, each share is also said to have been exchanged for a Northam Holdings Share pursuant to the implementation of the Northam Scheme.

The aggregate purchase price is reported to be in respect of the NPH repurchases amounts to approximately R2.4 billion. Shareholders of Northam are also noted to have granted approval at the general meeting on Wednesday, 30 June 2021, for the repurchase of shares.

When will the NPH repurchases be implemented?

Repurchases will be implemented on or about Thursday, 23 September 2021, in accordance with the terms of the agreements governing the Share Sale Offer. An application will also be made to JSE to terminate the listing of the repurchase shares after implementing the repurchase.

What will the impact be on Northam Holdings Shares in issue?

As stated by Northam, following the implementation of the NPH repurchase, the total number of Northam Holdings Shares in issue will be reduced from 376 787 216 to 362 216 153, with one Northam Holdings Share held in Treasury.

What does the Northam Holdings CEO have to say about the share repurchase?

CEO, Paul Dunne believes that the additional share repurchase will further enhance shareholder returns in the medium to long term. He also stated that Northam will have 8.9 percent less shares in issue on completion of the repurchase transaction.

Mahlohonolo Lakaje
[email protected]

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