Key points
- Acceptances totaled 27 million ODM shares, with 17 million taking the R8.25 per share cash offer, including minority shareholder Trans Hex Group Ltd.
- The remaining 10 million ODM shares were exchanged for R8.25 per share paid 50 per cent in cash and 50 per cent in NAMCO shares, requiring about 3.05 million new NAMCO shares.
- NAMCO also issued 2.7 million additional shares to raise $11-million (U.S.) for general corporate purposes, a total dilution of 14.6 per cent.
- The offer values ODM, a debt-free marine diamond producer with three mining vessels and $10-million (U.S.) in cash, at $63-million (U.S.), with fiscal 1999 production forecast at 80,000 carats.
Namibian Minerals’ general offer for shares in Ocean Diamond Mining
Holdings Ltd. (ODM) has closed successfully and it now holds 92 per cent of ODM
shares.
Acceptances were received for a total of 27 million ODM shares. Holders
of 17 million ODM shares, including minority shareholder Trans Hex Group Ltd.,
elected to take the cash offer of R8.25 per share. The remaining holders of 10
million ODM shares elected to take R8.25 per share payable 50 per cent in cash and 50 per cent
in NAMCO shares. Approximately 3.05 million NAMCO common shares will be issued
to complete the general offer, and an additional 2.7 million shares were
issued to raise $11-million (U.S.) for general corporate purposes. This equates to
a dilution of 14.6 per cent. Investec Bank Ltd. advised and assisted NAMCO on the
transaction.
The offer values ODM at $63-million (U.S.). It is a profitable marine diamond
producer which owns three mining vessels and has forecast production of 80,000
carats in fiscal 1999. ODM has no debt and current cash of $10-million (U.S.).
“NAMCO has acquired 20,000 square kilometres of marine concessions ranging from
good grassroots exploration to proven reserves. Our technology and
operational expertise will substantially boost ODM’s production. This is a
wonderful acquisition for our company,” said NAMCO’s chairman and chief executive officer Alastair Holberton.
NAMCO is the largest independent marine diamond producer operating off
the coast of Namibia using proprietary leading-edge marine mining technology.
The company expects to mine 260,000 carats of gem quality diamonds this year.
Half-yearly earnings to June 30, 1999, were $10.6-million (U.S.), or 28 U.S. cents per
share. The company paid its first dividend earlier this year.
