Basil Read Mining (Pty) Ltd said its wholly owned subsidiary, Basil Read Mining Botswana (Pty) Ltd, has entered into an agreement with Thiess Botswana (Pty) Ltd. and Bothakga Burrow Botswana (Pty) Ltd. to sell BRMB’s 28% interest in the Majwe Mining Joint Venture (Pty) Ltd. to the two.
The total purchase consideration is P 85 million or approximately R110 million. “BRMB will sell 28 ordinary shares constituting 28% of the issued shares of Majwe for an amount of BWP 85 000 000 (approximately ZAR110 500 000) of which Thiess will purchase 10 ordinary shares constituting 10% of the issued shares of Majwe JV and BBB will purchase 18 ordinary shares constituting 18% of the issued shares of Majwe JV.”
“Shareholders are advised that Basil Read Mining Botswana (Pty) Ltd. (“BRMB”), a wholly owned subsidiary of Basil Read Mining (Pty) Ltd. which is a wholly owned subsidiary of Basil Read Ltd. (in Business Rescue) (“BRL”) and which in turn is a wholly owned subsidiary of the Company, has entered into an agreement with Thiess Botswana (Pty) Ltd. (“Thiess”) and Bothakga Burrow Botswana (Pty) Ltd. (“BBB”) (collectively the “Purchasers”) to sell BRMB’s 28% interest in the Majwe Mining Joint Venture (Pty) Ltd. to the Purchasers (the “Disposal”).”
Sale and purchase
BRMB will sell 28 ordinary shares constituting 28% of the issued shares of Majwe for an amount of BWP 85 000 000 (approximately ZAR110 500 000) of which Thiess will purchase 10 ordinary shares constituting 10% of the issued shares of Majwe JV and BBB will purchase 18 ordinary shares constituting 18% of the issued shares of Majwe JV.
The purchase consideration
The total purchase consideration is BWP 85 000 000 (approximately ZAR110 500 000) and will be settled in cash by the Purchasers, as follows:
• The combined First Tranche payments of BWP50 000 000 (approximately ZAR65 000 000) are payable by the Purchasers on the Effective Date of the Disposal;
• The combined Second Tranche payments of BWP35 000 000 (approximately ZAR45 500 000) are payable by the Purchasers on the Completion Date of the Disposal;
The Purchase consideration is based on an independent valuation performed by PwC Inc, dated 6 November 2018.
Effective date
The effective date is 5 business days after the CP Fulfillment Date. The Completion Date is the later of 31 January 2019 or of the 5th business day after the effective date.
