[miningmx.com] — This is an adjusted version of an earlier Miningmx
article which said African Rainbow Minerals chairman, Patrice Motsepe, sold shares for
a profit of R99m – Editor.
IN one of the larger share deals accruing to an individual so far this year, Patrice
Motsepe has exercised share options issued by African Rainbow Minerals (ARM), the
diversified mining company of which he is Executive Chairman.
According to an announcement to the JSE last week, Motsepe sold 550,000 shares in
ARM for an average price of R180.4c/share. This was in terms of share options
granted to Motsepe from 2004, the year when ARM was founded, at an issue price of
R27/share. The shares were vested with Motsepe in successive years from 2004 to
2006.
ARM said that in terms of its share incentive scheme, the share options would have
expired on December 15, 2012 if they had not been exercised.
The shares would be placed in a family trust known as Botho-Botho Commercial
Enterprises, “for the benefit of Mr Patrice Motsepe and his immediate family,’ the
announcement said.
This effectively means that Motsepe exercised the share options, but then bought the
shares for his family trust for about R48m inclusive of taxation, according to sources.
ARM has been one of South Africa’s most successful empowerment companies in the
mining sector, succeeding to return dividends to shareholders, and to the
communities in which it operates, where others have failed.
This is partly owing to the diversity and quality of the company’s diverse mining
interests, which include ferrometals, platinum as well as a stake in Harmony Gold; an
investment that was much criticised in the past.
Motsepe, a former lawyer who worked from his car boot in the early part of his career
offering mining services to South Africa’s gold mines, was put on the cover of US
magazine Forbes in 2008 when he became South Africa’s first black (dollar)
billionaire.
As of March 2012, Motsepe was described by Forbes as having a net worth of
$2.7bn, and was ranked 442nd in the world’s richest people, and fourth richest in
South Africa.
He controversially threw his weight behind a proposal for the nationalisation of the
South African mining industry several years ago, adding the rider: “If it was the will of
the people’ – a stance he recently defended as having been in line with democratic
standards.
ARM’s share price has gained about 86% since September, 2008 when it was trading
at R99.30/share.
