Johannesburg - Altx-listed clay brick and aggregates manufacturer Brikor has agreed to acquire the remaining 69 percent of Ilangabi Investments 12, which owns the mining rights for an 84.75-hectares mine in Nigel, from the estate of former chief executive Garnett van Niekerk Parkin, for R20 million.
Parkin, who had been the chief executive since 1998, died in a car accident in January.
Brikor said the coal mined at Ilangabi was sold to various traders and local buyers and certain of the coal mined and the clay extracted during the operations were used in Brikor’s brick manufacturing, adding the acquisition would enable Brikor to effectively own 100 percent of the coal and clay reserves owned by Ilangabi.
The purchase price will be paid in cash in installments.
The transaction is still subject to various conditions precedent, including the approval of all the relevant regulatory authorities.
Brikor reported last month it had come out of provisional liquidation, saving more than 1 000 jobs and creating a further 250 jobs.
The company listed on AltX in August 2007 and went into provisional liquidation in August 2013 when it experienced financial distress following the conclusion of two acquisitions in 2008, the year of the global financial crisis-induced market collapse, which resulted in a protracted strike at the company.
Trading in Brikor’s shares on AltX was suspended when it went into provisional liquidation. The lifting of the suspension is still subject to the publication of Brikor’s next financial results and JSE approval.
BUSINESS REPORT