Key points
- The panel ruled that Namco’s general offer of 8.25 rand per share was the correct price, reversing an earlier ruling that had set it at 10.00 rand per share.
- Namco will not be required to pay up to $6.5-million (U.S.) in additional compensation to ODM shareholders.
- The panel ordered Trans Hex Group to pay 85 per cent and Namco to pay 15 per cent of the appeal hearing’s costs.
- Namco chairman and CEO Alastair Holberton said the company is pleased with the ruling and with initial results from ODM’s operations.
South Africa’s Securities Regulation Panel has
ruled in an appeal hearing that Namco did not act in concert with a local
consortium in the company’s $60-million (U.S.) acquisition of Ocean Diamond Mining
Holdings Ltd. (ODM) last year.
In addition, the panel ruled that Namco’s general offer of 8.25 rand per
share was the correct offer price, reversing a previous ruling that the offer
should have been at 10.00 rand per share, being the highest price paid by the
consortium. The company is therefore not required to pay an additional amount
of up to $6.5-million (U.S.) to ODM shareholders. The company had fully provided
for such an eventuality.
The panel has also ruled that the Trans Hex Group should pay 85 per cent and
Namco 15 per cent of the panel’s costs of the appeal hearing.
“We are extremely pleased by the panel’s ruling. We are impressed with
initial results obtained from the ODM operations and look forward to realising
the full potential of its excellent assets,” said Alastair Holberton, chairman
and chief executive officer of Namco.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
