Harmony raises R1 billion via share sale

FILE PICTURE

FILE PICTURE

Published Jun 6, 2018

Share

JOHANNESBURG - South African gold miner Harmony Gold raised just over R1.05 billion ($82 million) via the issue of new shares, it said on Wednesday, raking in cash to pay down debt used for an acquisition.

Harmony took out loans to partly fund the $300 million acquisition of the Moab Khotsong mine earlier this year in a deal that the company said would significantly boost its operational cash flow.

The company, which competes with AngloGold, Gold Fields and Sibanye-Stillwater at home, sold 55 million new shares, or 15% stake, at R19.12 each, an 11.7% discount to the closing price on Tuesday.

UBS, JP Morgan, Absa and Nedbank arranged the so-called accelerated bookbuild, a share sale done with little to no marketing.

-BUSINESS REPORT 

Related Topics: