Afarak Group is pleased to announce an agreement between Afarak Mogale and the
Mogale Alloys Workers Trust on the purchase of all the shares the Trust holds in
Afarak Mogale.
In 2009; Ruukki Group, today Afarak Group, acquired 90% of Afarak Mogale. The
remaining 10% was held by the Mogale Alloys Workers Trust. For the past 5 years,
numerous requests have been made by the beneficiaries of the Mogale Alloys
Workers Trust for Afarak Group to acquire the additional 10%. 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 8-year period.
Willem Smith, managing director of Afarak Mogale, 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.
Guy Konsbruck, CEO of Afarak Group said that, "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."
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