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Friday, 23rd December 2005 (3906 views)

Gold mining conglomerate Mvelaphanda Group (Mvela) has announced that it is selling off its 23 per cent stake in Mvela Resources to a black investment group.

In a move that will see the black-owned company withdraw from the mining sector, the R763 million deal will include a contract to manage Mvela Resources, which owns a stake in platinum, gold and diamond mining operations.

The company has revealed that it is selling the stake to Incwala, which is to fund the deal through cash and debt facilities.

Mvela has a 22 per cent stake in Northam Platinum, as well as a 15 per cent share of Gold Fields SA, meaning that the deal will further bolster Incwala's credentials in the South African mining industry.

"The Mvela Resources board and management look forward to working with Incwala to create value for all stakeholders," commented Mvela Resources chief executive Pine Pienaar on announcing the agreement.

Incwala's chief executive Arne Frandsen commented in September that he intended the company to pursue "an aggressive – but prudent – acquisition strategy" in the months ahead and this deal appears to be a furtherance of this aim.

 

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