Afarak to acquire remaining 10% of Afarak Mogale

Afarak Group has agreed to buy the remaining 10% stake in Afarak Mogale from the Mogale Alloys Workers’ Trust.

Ruukki Group, today Afarak, acquired 90% of Afarak Mogale in 2009.

Afarak said that for the past five years, numerous requests have been made by the beneficiaries of the Mogale Alloys Workers’ Trust for Afarak Group to acquire the additional 10%.

A statement today said: “After several years of negotiation, an agreement was finally reached between the Trust and Afarak Mogale, with the approval of the majority of the beneficiaries of the Trust.

“Afarak Mogale has put forward an offer of ZAR64.9 million to acquire the remaining 10% in a share buy-back scheme that will see the shares transferred to Afarak Mogale over an eight-year period.”

Afarak Mogale managing director Willem Smith expressed his satisfaction at the conclusion of negotiations.

He further added that he felt confident that management and employees were now fully aligned on the shareholding and incentive structure of Afarak Mogale and this should usher a new era of industrial relations.

Afarak Group chief executive Guy Konsbruck said: “This buy-back is an important element in consolidating our position in South Africa.

“I would like to thank Dr Alistair Ruiters, the former CEO, and the team at Mogale for concluding the negotiations.”

At 8:00am: (LON:AFRK) Afarak Group share price was 0p at 75p

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