Afarak Group Plc Afarak Group Repurchases 10% Of The Shares Held By The Mogale Alloys Trust

 
TIDMAFAGR 
 
 
   Afarak Group is pleased to announce an agreement between Afarak Mogale 
and the Mogale Alloys Workers Trust on the purchase of all the shares 
the Trust holds in Afarak Mogale. 
 
   In 2009; Ruukki Group, today Afarak Group, acquired 90% of Afarak 
Mogale. The remaining 10% was held by the Mogale Alloys Workers Trust. 
For the past 5 years, numerous requests have been made by the 
beneficiaries of the Mogale Alloys Workers Trust for Afarak Group to 
acquire the additional 10%.  After several years of negotiation, an 
agreement was finally reached between the Trust and Afarak Mogale, with 
the approval of the majority of the beneficiaries of the Trust.  Afarak 
Mogale has put forward an offer of ZAR64.9 million to acquire the 
remaining 10% in a share buy-back scheme that will see the shares 
transferred to Afarak Mogale over an 8-year period. 
 
   Willem Smith, managing director of Afarak Mogale, expressed his 
satisfaction at the conclusion of negotiations. He further added that he 
felt confident that management and employees were now fully aligned on 
the shareholding and incentive structure of Afarak Mogale and this 
should usher a new era of industrial relations. 
 
   Guy Konsbruck, CEO of Afarak Group said that, "This buy-back is an 
important element in consolidating our position in South Africa.  I 
would like to thank Dr Alistair Ruiters, the former CEO, and the team at 
Mogale for concluding the negotiations." 
 
   PR MOGALE ALLOYS TRUST EN: http://hugin.info/143997/R/2071650/778507.pdf 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Afarak Group via Globenewswire 
 
 
  http://www.afarakgroup.com

(END) Dow Jones Newswires

January 18, 2017 02:00 ET (07:00 GMT)

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