Mvelaphanda Resources (Mvela) has announced that all the pre-conditions of its R1.1 billion transaction with Afripalm have been met, allowing the deal to continue as anticipated.

The deal, which will see Afripalm become Mvela's largest shareholder with a 31 per cent stake in the company, is the first-ever empowerment transaction between two companies owned by black investors.

Under the terms of the transaction, which the board voted for unanimously in February, Mvela is now intended to act as the sole source through which Afripalm seeks new opportunities and investments and is legally bound to inform of the company of any new openings that it knows of.

Further conditions of the deal include Lazarus Zim of Afripalm assuming the position of Chairman after Mvela's current head Tokyo Sexwale stands down.

Meanwhile, Ragavan Moonsammy and Philisiwe Buthelezi are to join Mvela's board of directors with immediate effect.

The company also announced that funding accruing from the transaction is earmarked for expansion throughout Africa.

Sources:

Mvela-Afripalm deal to go ahead after all conditions met
10/04/07
http://www.miningweekly.co.za/article.php?a_id=107019">http://www.miningweekly.co.za/article.php?a_id=107019">http://www.miningweekly.co.za/article.php?a_id=107019

Mvela, Afripalm conditions met
10/04/07
http://www.sundaytimes.co.za/Business/Article.aspx?id=433759">http://www.sundaytimes.co.za/Business/Article.aspx?id=433759">http://www.sundaytimes.co.za/Business/Article.aspx?id=433759

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