[miningmx.com] – KEATON Energy said its empowerment partner, Rutendo Mining, had exchanged shares worth 26% in a Keaton Energy subsidiary company for just under 22% stake in the listed entity.
The so-called “flip-up’ transaction honours an original shareholder agreement between Keaton Energy, the subisidiary company, and Rutendo, and was valued at R150m. Keaton will also pay Rutendo R6m in six installments.
In order to protect, Keaton Energy’s empowerment credentials, Rutendo had agreed not to trade (encumber) or sell its newly acquired shares in the company for three years.
“The Rutendo flip transaction enables Keaton Energy to retain and secure its BEE credentials on a group level while providing Rutendo Mining access to a more liquid shareholding within the limits of the contractually agreed share restriction provisions,’ Keaton said in a statement.
