Lon­min dragged to court over black-own­er­ship deal

CityPress - - Business - – Bloomberg

A ru­ral or­gan­i­sa­tion has re­quested a legal re­view of a deal in which Lon­min, the world’s third-big­gest plat­inum pro­ducer, sold a stake to a lo­cal com­mu­nity.

Lon­min in July agreed to pay the Bapo ba Mo­gale tra­di­tional com­mu­nity R564 mil­lion for the group to waive rights to roy­alty pay­ments.

The Bapo agreed to buy Lon­min shares with the funds, as the com­pany aimed to meet a 26% black­own­er­ship thresh­old.

But the Bapo’s tra­di­tional coun­cil didn’t have the author­ity to con­clude the deal with Lon­min and the deal lacked pro­ce­dural fair­ness and trans­parency, ac­cord­ing to Julius Ram­aboa, chair­per­son of the Sero­dumo Sa Rona com­mu­nity or­gan­i­sa­tion and the main ap­pli­cant in the court process.

“One of our pri­mary con­cerns is that nearly noth­ing is known by the com­mu­nity at large about the terms of the trans­ac­tion or its con­se­quences,” Ram­aboa said.

Ac­cord­ing to Lon­min, the court ap­pli­ca­tion was ini­ti­ated by a small mi­nor­ity with vested in­ter­ests.

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