Kumba’s Strategic Shares Play: Sishen’s R119K Transaction Signals Compliance Success

  • Successful Transaction: Sishen Iron Ore, Kumba's major subsidiary, completes the on-market sale of 201 ordinary shares for R119,172.90.
  • BRP Compliance: The sale follows Bonus and Retention Share Plan rules, with forfeited shares sold according to approved guidelines.
  • Corporate Governance: Clearance obtained affirms Kumba Iron Ore's commitment to ethical business practices and adherence to regulatory standards.
By Lethabo Ntsoane

In a disclosure made yesterday, Kumba Iron Ore Limited, a prominent member of the Anglo American plc group, revealed that its major subsidiary, Sishen Iron Ore Company Proprietary Limited, has successfully executed an on-market sale of securities.

Details of the Transaction

AspectDetails
Date of Transaction5 December 2023
Nature of TransactionOn-market sale of securities
Class of SecuritiesOrdinary shares
Number of Securities201
Selling Price per ShareR592.90
Total Transaction ValueR119,172.90
Nature of InterestDirect beneficial
Clearance ObtainedYes

Background and Context

This transaction is in accordance with the rules of the Bonus and Retention Share Plan (BRP), where 201 ordinary shares were forfeited by participants upon termination of employment before vesting. The sale aligns with rule 8.5.4.3.1 of the amended BRP, which received shareholder approval during the Annual General Meeting on 10 May 2019.

Significance of the Transaction

The completion of the on-market sale marks a strategic move for Kumba Iron Ore and its subsidiary, as it demonstrates adherence to the BRP guidelines and ensures the efficient management of securities within the organization. This approach aligns with Kumba’s commitment to transparency and compliance with the Listings Requirements of the JSE Limited.

Direct Impact on Shareholders

The selling price of R592.90 per share resulted in a total transaction value of R119,172.90. The direct beneficial interest in this sale signifies a tangible financial outcome for both the subsidiary and Kumba Iron Ore Limited.

Confirmation of Compliance

With clearance obtained for this transaction, Kumba Iron Ore affirms its commitment to conducting business ethically and within the regulatory framework. This reaffirms the company’s dedication to corporate governance and maintaining the trust of its shareholders and stakeholders.

Conclusion

The successful on-market sale of securities by Sishen Iron Ore Company Proprietary Limited reflects Kumba Iron Ore’s commitment to responsible business practices and adherence to regulatory standards. This strategic move contributes to the company’s overall transparency and reinforces its standing as a key player in the mining sector.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo