OTCPK:KATFF - Post by User
Comment by
DonDeanoMarcoon Jun 21, 2018 11:26am
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Post# 28205672
RE:I hope this helps folks grasp KAT's FINANCIAL ENGINEERING
RE:I hope this helps folks grasp KAT's FINANCIAL ENGINEERING
to make it more clear. Admittedly I finally understand. The agreement struck between the two companies involves a $5.6 billion debt-to-equity swap for Katanga Mining Ltd., effectively reducing KCCs debt load . The deal also involves a one-time payment of $150 million to Gecamines and waiver of some mining rights, ....so Katanga mining is taking on debt for equity in KCC, but actually does not change 75:25% split. However, KAT gets 75% of KCC which now has much less debt, albeit KAT shareholders gets the debt on their/our books. In this case gecamines gets a really sweet deal, they get 25% of KCC with much less debt than before.