JOHANNESBURG (miningweekly.com) - Platinum mining and marketing company Impala Platinum (Implats) on Thursday announced details of an annual general meeting to approve the issuing of 175-million new shares.

The Johannesburg Stock Exchange-listed company said shareholders would be convened on July 24 to vote on resolutions authorising:

• the conversion of the company’s entire authorised and issued share capital from par value shares to no par value shares;
• an increase in authorised share capital from 844 008 000 ordinary shares to 944 008 000 ordinary shares;
• the amendment of the company’s memorandum of incorporation to take account of the ordinary share conversion and authorised share capital increase; and
• the issuing of a maximum of 175-million new ordinary shares on conversion of the 2022 convertible bonds.

This relates to Implats on May 25 offering to buy its 2018 dollar and rand convertible bonds and simultaneously launch a dual offering of 2022 dollar and rand convertible bonds.

The 2022 convertible bonds are currently cash-settled instruments and the general meeting has been convened to allow shareholders to vote their approval for Implats to settle these through the issuing of new Implats ordinary shares for bondholders exercising their conversion rights.

If shareholders do not approve the proposed resolutions, the 2022 convertible bonds will remain subject to cash settlement, which could constrain Implats’ ability to pursue new business opportunities, invest in existing and new projects, fund ongoing business activities, retire or service outstanding debt and pay dividends, all of which could adversely affect its results, operations and financial position, the company outlined.

A related party transaction involves investment company Allan Gray, with more than a 10% beneficial interest in the ordinary shares. Allan Gray has been allocated 2022 convertible bonds with a nominal value of R270-million following the bookbuilding process.

PricewaterhouseCoopers Corporate Finance has been appointed by the Implats board to determine whether the terms and conditions are fair to shareholders.