[miningmx.com] — Investment group Remgro has approved the unbundling of its investment in diamond miner Trans Hex.
It said that subject to conditions precedent being fulfilled, Remgro shareholders will receive 5.85 Trans Hex shares for every 100 Remgro shares held.
Remgro will unbundle 30.215 million shares in Trans Hex which equate to
28.49% of the entire issued share capital of Trans Hex.
“During November 2009 it was decided to exit the investment in Trans Hex as the directors were of the opinion that shareholders should be given the choice of ownership given the company’s exposure to the Angolan operations and potential upside that might result from it. Due to its size relative to Remgro the potential uplift will be materially diluted within Remgro.
“Accordingly the investment was reclassified as an investment ‘held for sale’ with effect from 30 November 2009. Recently Trans Hex announced that agreement has been reached with the Angolan parties on the terms and structure of the Luana diamond concession, which is seen as a significant breakthrough. On 21 June 2010 the Remgro Board approved the unbundling of the investment in Trans Hex to its shareholders as a distribution.
“The proposed distribution will afford shareholders the opportunity to obtain a direct shareholding in Trans Hex. It will increase the liquidity and free float of the Trans Hex shares on the JSE,” Remgro said.