In a strategic move to manage its Bonus and Retention Share Plan (BRP), Sishen Iron Ore Company Proprietary Limited, a major subsidiary of Kumba Iron Ore Limited, executed a successful on-market sale of securities on 4 August 2023. The sale, compliant with the Listings Requirements of the JSE Limited, involved the forfeiture and subsequent sale of 67 ordinary shares, with a total transaction value of R30,296.06.
The sale of securities represents a carefully considered action under the umbrella of the BRP, which has been a crucial component of the company’s compensation and retention strategy. The securities were originally awarded to an employee as part of the BRP but were forfeited upon the employee’s termination of employment prior to vesting. This triggered the execution of rule 8.5.4.3.1 of the amended BRP, approved by shareholders during the Annual General Meeting held on 10 May 2019, allowing for the sale of the forfeited shares.
The clearance obtained for the transaction ensures that the sale was conducted in accordance with the regulations and rules governing such transactions, highlighting the commitment of Sishen Iron Ore Company to transparent and responsible financial practices.
Commenting on the successful sale, Fazila Patel, Company Secretary at Anglo American, the parent company of Kumba Iron Ore, stated, “This on-market sale of securities by Sishen Iron Ore Company underscores our dedication to prudently manage our Bonus and Retention Share Plan while adhering to regulatory requirements. It is a testament to our commitment to align our actions with shareholder interests.”
The following table provides an overview of the key details of the transaction:
| Date of Transaction | Nature of Transaction | Class of Securities | Number of Securities | Selling Price per Share | Total Transaction Value |
|---|---|---|---|---|---|
| 4 August 2023 | On-market sale | Ordinary shares | 67 | R452.1800 | R30,296.06 |
Sishen Iron Ore Company’s ability to efficiently manage its BRP is indicative of the company’s strategic approach to compensation and retention. This move not only ensures adherence to established protocols but also highlights a proactive and responsible approach to financial management.
