Petmin may delist on private equity bid

JOHANNESBURG (miningweekly.com) – Multicommodity mining company Petmin on Monday said that if an offer by newly incorporated public company Bidco to acquire all or a portion of its issued ordinary shares, is implemented, it would propose to delist from the JSE.

In a statement, the Jan du Preez-led company noted that it had, last week, entered into an implementation agreement with mid-market private equity business Capitalworks, acting in its capacity as Bidco's general partner of the special purpose acquisition partnership.

The offer will be settled at a price of R1.55 for each Petmin share.

Capitalworks will fund Bidco by advancing a loan of up to R150-million. Capitalworks believes that Petmin and reinvesting shareholders will benefit from the support of Capitalworks, through Bidco, as a key shareholder. Further, it noted that all costs incurred in maintaining a listing on the JSE would be eliminated, realising more value for shareholders.

Petmin's shares on Monday rose 9.63% to 148c apiece.

Among Petmin's operations is the 100%-owned Somkhele anthracite mine, near Richards Bay in KwaZulu-Natal; the North Atlantic Iron Corporation, which produces high-quality low-cost merchant pig iron, in Labrador, Canada and a 25% stake in the Veremo pig iron joint venture near Stoffberg, in Mpumalanga.