Johannesburg - Afrimat, the listed open-pit mining group and industrial minerals and construction materials supplier, yesterday said it had entered into negotiations about the acquisition of an iron ore business that was currently under formal business rescue.
The company said that a formal business rescue proposal by Afrimat was presented to the creditors of the business last week, which was accepted and approved by the creditors with the required majority.
It said the implementation of its business rescue proposal was subject to the successful completion of several agreements, including a cession and delegation agreement with the secured creditor of the business, a sale of shares and shareholders agreement with the current shareholders and a management agreement.
The company said that if all conditions were successfully concluded, it may have a material effect on the price of Afrimat shares and advised shareholders in the company to exercise caution when dealing in the company’s shares until a full announcement was made.
Afrimat shares fell 2.66 percent on the JSE yesterday to close at R23.83.
BUSINESS REPORT