Business
Disposal of Pan African Resources shares by PAR...
Disposal of Pan African Resources shares by PAR....
About this update from Pan African Resources Plc
[{"type":"text","content":"\n \nPan African Resources PLC\n\n(Incorporated and registered in England and Wales under Companies Act 1985 with registered number 3937466 on 25 February 2000)\n\nAIM Code: PAF\n\nJSE Code: PAN\n\nISIN: GB0004300496\n\n(“Pan African Resources†or the “Company†or the “Groupâ€)\n\nDISPOSAL OF PAN AFRICAN RESOURCES SHARES BY PAR GOLD PROPRIETARY LIMITED\n\nPan African Resources has been notified that PAR Gold Proprietary Limited (“PAR Goldâ€) has disposed of 130-million shares in Pan African Resources, representing 5.8% of the issued share capital of the Company, at a price of R1.15 per share, representing a 5.0% discount to the Company’s last closing price of R1.21 on 29 May 2018 (the “Disposalâ€).\n\nFollowing the Disposal, PAR Gold continues to hold 306.36-million Pan African Resources shares, representing 13.7% of the issued share capital of the Company. Participants in the private placement include existing institutional shareholders.\n\nThe Pan African Resources shares held by PAR Gold are treated as treasury shares and eliminated on consolidation for purposes of calculating earnings per share. Following the Disposal, the Company’s number of issued shares is reconciled as follows:\n\n\n\nTotal issued shares:\n2 234 687 537\n\n\n\nLess: Shares held by PAR Gold (subsequent to Disposal):\n 306 358 058\n\n\n\nShares taken into account for earnings per share calculations going forward:\n1 928 329 479\n\n\n\nPan African Resources is an indirect 49.9% shareholder in PAR Gold and, given the economic rights attached to its shareholding, will receive the majority of the proceeds from this Disposal. The proceeds, net of costs and capital gains taxes, are approximately R126 million and will be used for general corporate and liquidity purposes and to fund the expansion of the Elikhulu project’s throughput to 1.2-million tonnes per month.\n\nFollowing receipt of the proceeds from the Disposal, the Company has, in conjunction with its existing debt facilities, the necessary resources to meet its operational and immediate growth objectives and fund its ongoing capital requirements. The Disposal will not impact the Group’s black economic empowerment (“BEEâ€) holdings due to the conclusion of a BEE restructure as previously announced on 15 December 2017.\n\nMacquarie Advisory and Capital Markets ...