Finweek English Edition - - IN DEPTH EMPOWERMENT -

Shan­duka’s orig­i­nal loan was £200m (just over $300m or R2.3bn at the time), but at the Septem­ber 2014 year-end, Shan­duka owed Lon­min $417m (R4.58bn at the ex­change rate at the time). This would be well over R5.5bn now due to the rand’s de­val­u­a­tion.

This debt arises from a deal in mid-2010 where Shan­duka ac­quired 50.03% of Incwala Resources, which owns 18% of Western Plat­inum, 18% of East­ern Plat­inum and 26% of Akanani, giv­ing Shan­duka an ef­fec­tive 9% stake in Lon­min.

Shan­duka’s in­vest­ment was fa­cil­i­tated by the R2.3bn loan raised by Lon­min − and a R300m eq­uity in­jec­tion by Shan­duka. This was fol­lowed by a fur­ther R175m loan from Lon­min.

Lon­min spokesper­son Sue Vey con­firmed for the 29 Oc­to­ber is­sue that ad­vance div­i­dends to Incwala have been R1.129bn to date, in­clud­ing R228m in the 2015 financial year. She also con­firmed that no other share­hold­ers have been given ad­vanced div­i­dends. The ad­vanced div­i­dends were paid in years in which Lon­min did not de­clare div­i­dends to or­di­nary share­hold­ers.

The loans to Shan­duka to date in­clude the £200m (R2.3bn) orig­i­nal loan in 2010 and a R175.5m pref­er­ence share sub­scrip­tion by Lon­min in Lexshell 806 in 2011.

Loans to Incwala of R510m in­clude R80m in 2011, R110m in Septem­ber 2013, R160m in March 2014 and R160m to ser­vice its fund­ing re­quire­ments in 2013. Vey would not com­ment fur­ther this week.

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