Continental Coal confirms SIOC-cdt as new economic empowerment partner

Continental Coal (ASX: CCC) has confirmed the Broad Based Black Economic Empowerment Company, the Sishen Iron Ore Company Community Development Trust (SIOC-cdt), is set to become the company’s new partner in South Africa.
SIOC-cdt is positioned to acquire the 26% interest in Continental’s South African subsidiary held by the company’s current BEE partner Masawu Investments (Pty) Limited.
The initial investment of ZAR140 million (around US$20 million) will be made by SIOC-cdt upon completion of the transaction to be invested by the Continental into the company's South African coal business
Continental said that the documentation of the binding agreement with the group is well advanced, with execution of subscription and shareholder agreements scheduled to be completed in August 2011.
Don Turvey, chief executive officer of Continental said, “This agreement has been the culmination of a great deal of time, effort and consultation with one of South Africa’s most established and successful broad based empowerment groups, to ensure broader based community participation in Continental’s future growth in South Africa.
“It is particularly significant for the company’s shareholders, and I believe paves the way for Continental’s long term future and success in South Africa.”
SIOC-cdt will have the right to appoint one director to the company’s board and two directors to the board of the company’s South African subsidiary.
The group was established in 2006 as a broad based socio-economic empowerment ownership initiative.


Originally published at: http://www.proactiveinvestors.com.au/companies/news/18332/continental-coal-confirms-sioc-cdt-as-new-economic-empowerment-partner-18332.html