JSE-listed WG Wearne has entered into an agreement with Elcu Pumps to sell a 60% stake in its noncore Brandvlei sand quarry and ancillary business for R7-million.
Upon completion, the Brandvlei asset will be 40% owned by WG Wearne and 60% by Dennis Human and other investors, including a staff member of WG Wearne’s designated adviser.Exchange Sponsors, under a contract mining agreement.
Wearne will then enter a supply agreement in terms of which the buyer will supply the total requirement of plaster sand to some of WG Wearne’s ready-mix plants.WG Wearne will use the proceeds to reduce debt and improve the liquidity position of the group in general.
