iop

I have made contact with a senior executive from IOP. Again I do not wish to publish his name as there is no need.

I queried the clause in their latest announcement regarding "...in the event of a change of control in Nkwe, to increase the consideration payable by Nkwe".


Was advised that due to the negotiations that were taking place at that time ( and now) there was always a possibility that a deal with the big BEE's may result in either Anglo, Xstrata etc taking control of the company.

The clause was basically to safeguard IOP by I guess give them more funds.

Note that if a NKP takeover was to eventuate IOP would not only receive the $50m but also be able to sell their 4 million NKP share holding at a reasonable profit.

I hope that the above clarifies the intent of the clause.

For those unhappy at me not disclosing the IOP source I say .... get off your arse and follow up yourself.