June 28 (Bloomberg) -- Assore Ltd., a South African mine holding company, said Shanduka Resources Ltd. will sell an 11.8 percent stake for 2.7 billion rand ($394 million) as part of larger plans enabling Assore to meet domestic ownership rules.
The proposals will allow Assore “to secure long-term empowerment” for local people, the Johannesburg-based company said in a statement today. Empowerment rules aim to boost black investors’ stakes in South African companies to help compensate for decades of disenfranchisement under the apartheid system.
Shanduka will sell the stake in Assore, owner of half of manganese producer Assmang Ltd., for 163 rand a share, a 27 percent discount to yesterday’s closing price of 222.91 rand.
Assore will secure a 26.1 percent stake in the company for black investors under further proposals, yet to be “refined,” that will be detailed in the second half, the company said.
Assore fell 6.36 rand, or 2.9 percent, to 216.55 rand by 2:42 p.m. in Johannesburg, giving a value of 30 billion rand. Shanduka Resources is a unit of Shanduka Group Ltd.
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