• Three cheers for Thuli

    Where are South Africa’s men and women of honour, asks Mandi Smallhorne.

  • Structure your pension

    An expert explains the ins and outs of different types of retirement annuities.

  • Inside Labour

    Without radical policy change SA's social fabric will continue to fray, says Terry Bell.

Data provided by iNet BFA
Loading...
See More

Mvela surges after Northam offer

Feb 08 2011 13:48 I-Net Bridge & Reuters

Company Data

NORTHAM PLATINUM LIMITED [JSE:NHM]

Last traded 43.11
Change 0.41
% Change 0.01
Cumulative volume 34669
Market cap 17.14bn

Last Updated: 01/09/2014 at 11:58. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Mvela unbundling puts Northam in play

Mvela soars after Khumama victory

Mvela parent 'enjoying fruits of labour'

 
Johannesburg - Shares in Mvelaphanda Resources [JSE:MVL] spiked 6% to its highest level in more than eight months on Tuesday after an offer from Northam Platinum [JSE:NHM] to acquire it.

Mvela's shares surged to an intraday high of R39.97 each from Monday's closing price of R37.70 per share - a level last seen in May last year.

In Tuesday midday trade, its shares were trading at R39 on the JSE - up 3.45% or 130 cents.

Northam, which is a smaller platinum producer, said on Tuesday morning it will buy Mvelaphanda Resources, giving it access to platinum and diamond projects.

The two companies said Northam will offer 20.9 million new shares to Mvela shareholders, valued at R982.8m.

Prior to the acquisition, Mvela will spin off its 50% stake in Northam to its own shareholders. Mvela has been looking to sell down its stakes in other companies to comply with JSE rules on cross-shareholding and delist.

JSE rules bar a listed firm from generating more than half of its earnings from an investment in another listed firm, or having more than three-quarters of its net asset value tied in another listed company.

Under those rules, Mvela would be forced to become a mining operator itself, or delist. The company had previously said it planned to delist, and said on Tuesday it would do so after the Northam deal.
NEXT ON FIN24X

Implats mulls mechanisation

2014-08-29 06:00

 
 
 

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
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

“Hippie sense makes business sense,” an entrepreneur said, adding that "purpose" was core to success.
 

Money Clinic

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