adminbillion rand (US$444 million) deal that will give 2,3 percent of the group to communities where it operates.
South African mining houses have to meet government requirements to ensure they are at least 26 percent black owned by 2014.
They are also under political pressure to do more for communities where they mine against the backdrop of glaring income disparities and calls by radical elements in the ruling African National Congress to nationalise the industry.
“The transaction underscores Amplats’ commitment to empowerment and community development,” the company said in a statement.
Amplats said the estimated costs to it of carrying out the transaction would be 1,161 billion rand or 0,77 percent of its market capitalisation in the two trading days that preceded the announcement.
South African empowerment deals often involve companies effectively giving away shares so there are costs.
Amplats said if the deal had taken place in January, the financial impact on its headline earnings per share for the six months to the end of June 2011 would have been a negative 36 percent and would have brought it to 792 cents from 1,236 cents.
The deal is structured to bring cash flow benefits from the outset with potential equity ownership in 10 years’ time. Benefits from the 6,3 million Amplats shares will be utilised at the community level on sustainable projects.
The shares will be issued to a trust.
Amplats’ share price was down 0,77 percent compared to a 0,28 percent decline in the blue-chip Top-40 index .
Benefits from the 6,3 million Amplats shares will be utilised at the community level on sustainable projects, the platinum producer said in a statement. – Reuters.
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