OREANDA-NEWS. November 06, 2012. Anglo American Platinum Limited (Anglo American Platinum) announces the approval of the proposed 51% indigenisation implementation plan at Unki Mines (Private) Limited (Unki) by the Minister of Youth Development, Indigenisation and Empowerment.

This transaction is the culmination of the originally envisaged process to develop Unki in partnership with the people of Zimbabwe.

The proposed transaction will be facilitated through a notional vendor financing structure and includes the following shareholding structure:

• 10% equity ownership transaction with a trust established for the benefit of the community surrounding Unki’s operations;
• 10% equity ownership transaction with a trust to be established for the benefit of all full time employees of Unki;
• 10% equity ownership transaction with a consortium of strategic equity partners;
• 21% equity ownership transaction with the National Indigenisation and Economic Empowerment Fund.

The disposal of equity under the indigenisation implementation plan will be undertaken at a market-related valuation of Unki adjusted for debt and is subject to the requisite Anglo American Platinum board and statutory approvals, as may be required. The acquisition price will be repaid from future dividends and Anglo American Platinum intends to implement the indigenisation plan by 30 June 2013. The expected economic cost to Anglo American Platinum of the empowerment plan is USD 59.3 million, which equates to 12.9% of the enterprise value of Unki at date of transaction. The Government of Zimbabwe has also agreed that it will ensure Anglo American Platinum receives payment of the amount of USD 142 million due to it for the cession of the Kironde and Bougai mineral right claims in March 2008. The payment of the USD 142 million is in lieu of empowerment credits due per the March 2008 cession of claims agreement and is in addition to amounts that will be receivable in respect of the disposal of the 51% equity in Unki. 

“Anglo American Platinum continues to contribute significantly to the upliftment of its host communities and its employees in South Africa and will leverage this experience to ensure the successful and seamless implementation of this transaction in Zimbabwe” commented July Ndlovu, Chairman of Unki.

Ndlovu further noted that “the success of this transaction is dependent on further engagement and consultation with affected stakeholders and consequently, forms part of an on-going engagement programme with the Government of Zimbabwe, Unki’s host communities, employees and other key stakeholders.”