Key points
- The offer expires Tuesday, Oct. 26, 1999, unless extended, and values ODM at $63-million (U.S.), or 383 million South African rand.
- Namco currently owns approximately 34 per cent of ODM and holds an option over an additional 8 million shares, or 17 per cent, which would bring its stake to about 51 per cent.
- ODM shareholders are offered payment 50 per cent in cash and 50 per cent in Namco shares valued at $4 (U.S.), with a full cash alternative also available.
- Namco has secured $41-million (U.S.) in financing for the purchase and plans to mine more than 260,000 carats of diamonds this year from its Luderitz Bay mining licence.
Namibian Minerals has entered into a formal offer to acquire the common shares of Ocean Diamond
Mining Holdings Ltd. (ODM) it does not currently own at 8.25 South African rand per share. The
offer expires on Tuesday, Oct. 26, 1999, unless extended. Namco announced its
intention to make the offer on Sept. 3, 1999.
Namco owns approximately 34 per cent of ODM and has an option over an additional
eight million shares (17 per cent), which if acquired would result in Namco owning
approximately 51 per cent of ODM. ODM shareholders are offered 8.25 South African rand per share
payable 50 per cent in cash and 50 per cent in Namco common shares at a price equivalent to
$4 (U.S.) (24.70 South African rand). In addition, Namco is offering a full cash alternative of
8.25 South African rand per ODM share.
The offer values ODM at $63-million (U.S.) (383 million South African rand). Namco has secured the $41-million (U.S.) financing required to purchase the shares in ODM it does not presently own.
The offer is subject to relevant regulatory approvals.
Namco’s chairman Alastair Holberton, said: “There are great synergies
from consolidation of the No. 2 and No. 3 marine producers in Namibia. The
application of our larger-scale production technology will more rapidly unlock
value from the combined marine concession holding of 27,000 square kilometres.”
Following the appointment of Mr. Holberton as chairman of ODM and
the purchase of a 34-per-cent stake in ODM, Namco’s future financial statements will
equity account for ODM. Namco’s financial statements for the third quarter are
therefore expected to be published at the end of October, 1999.
Namco has a reputation as an innovator in marine mining technology and
currently plans to profitably mine more than 260,000 carats of diamonds this
year from its Luderitz Bay mining licence. Approximately 95 per cent of Namco’s
production is gem quality. The company is currently building its second marine
diamond mining system, which is scheduled to start operation next year. It
recently announced a technological partnership in exploration technology with
German group Wirth, pioneers of marine drilling technology off the coast of
Namibia.
