9th Jun 2015 11:30
LONDON (Alliance News) - Pan African Resources PLC Tuesday clarified what will happen to a substantial stake in the company held by Shanduka Group (Proprietary) Ltd after it merges with another company.
Pan African noted media reports last week that Shanduka Group had entered into a deal to merge with Pembani Group (Proprietary) Ltd. Pan African said the merger is subject to regulatory approval.
Shanduka Group holds a 23.86% stake in Pan African through its subsidiary Shanduka Gold (Proprietary) Ltd.
"Pan African has been informed that following the completion of the transaction, Mergeco (the merged company) will not hold any interest in Shanduka Gold or in Pan African," said the company.
Following the merger, Shanduka Gold will be owned by The Mabindu Trust with a 49.5% stake, Jadeite Ltd with a 33.6% stake and The Standard Bank of South Africa Ltd holding the remaining balance. Shanduka Gold will retain the 23.86% stake in Pan African.
As a result, The Mabindu Trust, Jadeite and the South African bank will indirectly hold the 23.86% stake in Pan African.
"Pan African believes that the transaction does not negatively affect the group's existing black economic empowerment credentials," it said in a statement.
Pan African shares were down 6.5% to 10.75 pence per share on midday Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
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