A platinum producing company listed in the London Stock Exchange, Lonmin Plc announced a conditional Sale of Shares Agreement to sell the company’s 50% interest in Petrozim Line (Private) Limited (Petrozim) for a gross cash consideration of USD$14, 750, 000 to the National Oil Company of Zimbabwe (Private) Limited (NOIC) on Friday last week.
Lonmin says it will receive USD$8 million in the form of special dividends from Petrozim in a press release.
“The Transaction forms part of Lonmin’s ongoing programme to dispose of non-core assets,” says the platinum producer. “The purchase price and special dividends will be paid in cash on completion of the Transaction and will be used to improve the Company’s liquidity.”
Lonmin, which is also listed in the Johannesburg Stock Exchange is located in the Bushveld Igneous Complex, South Africa where more than 70% of known global PGM (Platinum Group of Minerals) resources are found.
The platinum company says that its interest in Petrozim has been impaired to nil and no attributable profits were recorded in the report and accounts for the year ended 30 September 2017.
“The closing of the Transaction is subject to various conditions precedent including approvals from the Zimbabwean Competition Commission, Zimbabwe Revenue Authority, in addition to the consent of Lonmin’s lending banks,” Lonmin says.
“Subject to fulfilment of the conditions precedent, the Transaction is expected to complete in Q4 of FY2018.”
The Standard Bank of South Africa acted as the Financial Adviser to Lonmin in the transaction of selling shares.
The government had plans to upgrade the Harare-Feruka pipeline to enable it to pump up to 16 million litres of fuel per months last year.