Northam Gains as Government Fund Buys Stake: Johannesburg Mover
Northam Platinum Ltd. (NHM), operator of the deepest mine for the metal, climbed to the highest in almost three months as a South African government fund acquired an additional stake.
The stock gained as much as 5.9 percent to 29.29 rand, the highest level since June 11, and traded at 28.80 rand as of 3:33 p.m. in Johannesburg, where the company is based. Northam said the Public Investment Corp., on behalf of the Government Employees Pension Fund, acquired an interest in the company, raising its holding to 18.9 percent.
Northam said Aug. 3 that a recent share price decline forced black investor groups Afripalm (Pty) Ltd. and Mvelaphanda Holdings (Pty) Ltd. to sell Northam stock to restore compliance with covenants set by lenders. The company said at the time that the government required it to “urgently restore” its shareholding by black groups. Mining companies operating in South Africa are required to have black investors to help make up for apartheid.
Northam said Afripalm unit Newshelf 848 sold 37,248,400 shares. The company didn’t quantify the PIC’s purchase. The GEPF held 8.3 percent as of July 27, according to data compiled by Bloomberg.
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