Johannesburg - Mining group Assore [JSE:ASR] and Shanduka
Resources on Tuesday announced the conclusion of a R2.7bn broad-based black
economic empowerment (B-BBEE) transaction.
Shanduka sold its 11.8% interest in Assore at a price of
R163 per share to Main Street 343, a special purpose vehicle owned by two
independent empowerment trusts set up by Assore.
The transaction would be effected by warehousing the
Shanduka equity block, the company said, adding that this would allow for
greater speed and execution certainty for both Assore and Shanduka.
It also allowed for time to consider and refine the details
of the second phase of the transaction with regards to the broad-based
beneficiaries of the BEE trusts set up by Assore.
"Our investment philosophy is to partner with companies
in order to play a meaningful role in maximising growth and
profitability," said Shanduka Group CEO Phuti Malabie.
"As Assore's empowerment partner, we enjoyed a long and
fruitful relationship and through this transaction, we are pleased to help
facilitate further empowerment. At the same time, Shanduka is creating an
opportunity for itself to diversify its interests and to redeploy transaction
proceeds into other South African investment opportunities," said Malabie.
Shanduka's investment in Assore in 2005 has yielded
attractive returns to the company and its shareholders, including several
Assore will ask its shareholders to approve the transaction
in August 2011.