(Alliance News) - Kazera Global PLC on Thursday said a South Africa-focused mining and infrastructure company has become its new largest shareholder after buying a 27% stake at a premium to the stock's closing price on Wednesday.
The Caerphilly, Wales-based company acts as an investor in the resource and energy sectors.
It said African Mineral Sands Pte Ltd purchased 250.0 million existing shares from Catalyse Capital Ltd and its related parties.
The shares were bought at a price of 1.5 pence each, nearly triple Kazera's closing share price of 0.52 pence on Wednesday. They were up 12% at 0.56 pence each in London on Thursday morning.
Kazera Chief Executive Officer Dennsi Edmonds said: "It is my pleasure to welcome AMS as Kazera's new largest shareholder. AMS and its partners have extensive experience in mining and infrastructure projects in Southern Africa and we have no doubt that they will add significant value, including via a number of new possible project opportunities AMS has already introduced to Kazera."
AMS CEO Prem Premraj said it took "longer than expected" to complete the Kazera share purchase.
"Having previously agreed to pay 1.5 pence per share, we were happy to conclude the purchase at that price as the opportunity Kazera offers is considerable," Premraj said. "We believe that we can use our contacts and connections to build on the current assets and support the management team to create a highly successful company."
Last December, Kazera shares traded just above 1 pence, but they have halved in value in the 12 months since.
By Hugh Cameron, Alliance News reporter
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