JOHANNESBURG (miningweekly.com) – JSE-listed Randgold & Exploration‘s (R&E’s) share price jumped more than 14% on Tuesday, after it announced distributions amounting to R310-million to shareholders.
The company, led by CEO Marais Steyn, said in a statement that its board had approved a distribution in specie of R&E’s shareholding in Gold Fields, comprising 2,271-million shares.
R&E shareholders would receive about 3,16 Gold Fields shares for every 100 ordinary shares held in R&E. The distributions were subject to the passing of a requisite resolution by the shareholders of R&E at a general meeting.
The board also approved a special dividend of 90c a share to the R&E shareholders by way of a payment from retained earnings.
The distribution in specie and the special dividend would result in a total distribution of R4,32 a share.
The three-million treasury shares currently held within the R&E group would not form part of the distributions.
R&E’s stock rose to R6,70a share when the market closed in Johannesburg.
The company, formerly owned by the late Brett Kebble, had focused the past five years on the recovery of misappropriated assets. It resumed operational activities and trading on the JSE in 2010, after being suspended in 2005.
By July 5, 2010, the company had recovered and distributed over six million and 1,5-billion ordinary shares in Gold Fields and JCI Limited respectively. Further, some R250-million was recovered from a number of third parties in the form of assets and cash.
Currently, R&E’s assets effectively consist of cash, after liabilities, of about R260-million, 2 270 687 ordinary shares in Gold Fields and a number of prospecting rights.
R&E said that its current asset base was in excess of its medium term operational requirements and that this was therefore an opportune time to release the distributions.
The distributions, as proposed, represent about 75% of the company’s current market capitalisation.