S.Africa's Mvela says may de-list, shares rise

JOHANNESBURG, Feb 19 (Reuters) - South Africa's black-owned Mvelaphanda Resources (MVLJ.J) said on Thursday it may de-list and cease to exist by the middle of next year after selling its stake in its unit Northam Platinum (NHMJ.J).

Shares in Mvela rose 12 percent to 27.75 rand after it said it could de-list to comply with stock exchange rules, denting hopes of expanding black ownership of mining companies following years of exclusion of blacks from the economy under apartheid.

Mvela was set up by politician Tokyo Sexwale, and its demise would also dash its own hopes of transforming itself from a holding firm into a mining operator.

The collapse of Mvela illustrates how South Africa's push to sell equity stakes in mining firms to black investors has been hit by the financial crisis and falling metal and stock prices, analysts said.

Johannesburg stock exchange rules say a listed firm should not generate more than half its earnings from an investment in another listed firm, or have more than three quarters of its net asset value tied up in another listed company. Under the rule, such a firm is classified as a pyramid company and must de-list.

"Mvela as a listed company would cease to exist," James Wellsted, Mvela's head of investor relations said.

"Our holding structure contravenes these requirements."

Impala Platinum (IMPJ.J), the world's No. 2 producer of the metal, last month walked away from its proposed $2.14 billion acquisition of rival Mvela and Northam to build a South African platinum champion, citing the global economic crisis.

Wellsted said Mvela earns more than 50 percent of its income from Northam, in which it has a 63 percent stake, and has about 75 percent of its net asset value in the platinum producer.

Wellsted said Mvela has been viewed as an albatross on Northam by the market. Northam's shares are rated poorly among its peers because the market views its dividend payouts as meant to sustain Mvela's income, from which Mvela services its debt.

Under the option to de-list, Mvela could sell its 50 million shares in Gold Fields (GFIJ.J), the world's No. 3 gold producer, Wellsted said. Mvela takes ownership of the shares on March 17.

Mvela would then sell its minority stake in diamond-miner Trans Hex (TSXJ.J).

At this point Mvela would sell its stake in Northam, leading to a re-rating of Northam's stock.

"This is a positive development for Mvela shareholders who would end up owning shares in Northam, which could be re-rated," Cape Town-based platinum analyst Barend Ritter of Sanlam Investment Management said.

(Reporting by James Macharia; Editing by David Cowell)