Pan African Resources Clarifies Shareholding After Shanduka Merger

LONDON (Alliance News) - Pan African Resources PLC Tuesday clarified what will happen to a substantial stake in the company held by Shanduka Group (Proprietary) Ltd after it merges with another company.

Pan African noted media reports last week that Shanduka Group had entered into a deal to merge with Pembani Group (Proprietary) Ltd. Pan African said the merger is subject to regulatory approval.

Shanduka Group holds a 23.86% stake in Pan African through its subsidiary Shanduka Gold (Proprietary) Ltd.

"Pan African has been informed that following the completion of the transaction, Mergeco (the merged company) will not hold any interest in Shanduka Gold or in Pan African," said the company.

Following the merger, the 23.86% stake in Pan African will be held between a broad-based black economic empowerment trust called The Mabindu Trust, Jadeite Ltd and The Standard Bank of South Africa Ltd.

No details of the transfer of Shanduka's stake were provided by Pan African.

"Pan African believes that the transaction does not negatively affect the group's existing black economic empowerment credentials," it said in a statement.

Pan African shares fell 4.4% to 11.00 pence per share on Tuesday morning.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

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