Wescoal BEE Conditions

[PercytheMoth]

I purchased some Wescoal shares recently. As part of a deal with Eskom, they have been given a coal supply contract with the condition that they have a BEE ownership of more than 50% by December. Does that mean that they will have to give away a large portion of the company and massively dilute value for the current shareholders or does it mean that a BEE company will purchase the shares - perhaps at a discount and thereby the value is more or less maintained? How do these BEE deals work?

[Harathke]

Wescoal already c.42% black-held. The BEE deal likely to be just 10% dilution via staff trust. Much of a muchness and shouldn't be too hard to execute. In fact, aligning staff (particularly if they bring Union in too) will likely de-risk operations even further and ultimate create upside down the line.

[PercytheMoth]

Thank you for the response Harathke!