With platinum prices enjoying their best levels in years, SouthernEra Resources‘ (SUF-T) board has approved a plan to hive off its diamond and precious metal assets into two separately listed public companies.
Southern Platinum will house the platinum and gold assets, and will begin trading on the Toronto Stock Exchange (TSX) under the symbol SPC on Aug. 30. The new diamond business, SouthernEra Diamonds, will continue to trade on the TSX and Alternative Investment Market under the new symbol SDM.
Earlier this summer, 99.7% of SouthernEra shareholders present at the annual and special meeting approved the split plan.
The company will distribute one Southern Platinum share for each SouthernEra share held by shareholders of record at the close of trading on Sept. 1. Shareholders will also receive shares in Southern Platinum at the same rate by about Sept. 8. Share certificates formerly representing SouthernEra common shares will then represent SouthernEra Diamonds’ shares.
“The reorganization of the group into separate platinum and diamond companies represents a significant milestone on our company’s history," SouthernEra chief executive Patrick Evans said in a prepared statement. "We believe the reorganization will unlock the considerable value of our diamond assets, which in recent years has been eclipsed by the growth in the value of our platinum assets."
The plan is still subject to certain conditions, but the company is confident those will be met by the effective date of Sept. 1.
SouthernEra has nearly 85.4 million shares issued and outstanding.
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