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?
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