• Voter paralysis

    With so much tilting voters against change, democratic reason is the loser, says Solly Moeng.

  • The power of perseverance

    True grit is a reliable predictor of who will achieve success in life, says Ian Mann.

  • It's the system

    The system sucks and it’s being used far too often as an excuse, says Mandi Smallhorne.

All data is delayed
Loading...
See More

Amplats in R3.5bn BEE deal

Nov 07 2011 11:30
Reuters

Company Data

ANGLO AMERICAN PLAT LIMITED [JSE:AMS]

Last traded 399
Change 26
% Change 7
Cumulative volume 334146
Market cap 0

Last Updated: 26-05-2016 at 04:19. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Amplats, Num seal two-year wage deal

Amplats not kicked out of Zimbabwe

Amplats sees higher headline earnings

Amplats on track to meet output targets

Gold price expected to boost SA miners

 
Johannesburg - Anglo Platinum [JSE:AMS] the world’s largest platinum producer, said on Monday it would implement a R3.5bn deal that will give 2.33% of the group to communities where it operates.

South African mining houses have to meet government requirements to ensure they are at least 26% black-owned by 2014.
 
They are also under political pressure to do more for communities where they mine against the backdrop of glaring income disparities and calls by radical elements in the ANC to nationalise the industry.

“The transaction underscores Amplats’ commitment to empowerment and community development,” the company said.

Amplats said its estimated costs in carrying out the transaction would be R1.161bn, or 0.77% of its market capitalisation in the two trading days that preceded the announcement.

Empowerment deals often involve companies effectively giving away shares so there are costs.

Amplats said if the deal had taken place in January, the financial impact on its headline earnings per share for the six months to the end of June 2011 would have been a negative 36% and would have brought it to 792 cents from 1 236c.

The deal is structured to bring cash flow benefits from the outset with potential equity ownership in 10 years’ time. Benefits from the 6.3 million Amplats shares will be utilised at the community level on sustainable projects. The shares will be issued to a trust, the platinum producer said in a statement.

anglo platinum  |  platinum  |  mining industry  |  bee

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
4 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE DEBT ISSUE

Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Would you take out a payday loan?

Previous results · Suggest a vote

Loading...