Kazera Global plc (AIM: KZG) shares jumped 10% in early trading after the company announced plans to return around 80% of net cash proceeds from its US$10.5 million Aftan settlement to qualifying shareholders.
The AIM-quoted investment company said the proposed African Tantalum shareholder return programme is intended to reward shareholders who supported Kazera through the arbitration and recovery process. The programme remains subject to legal, tax, working capital and regulatory considerations.
Kazera said its ordinary shares are expected to trade ex-entitlement from 31 July 2026, with the record date set for 3 August 2026. Shareholders on the register at the record date are expected to qualify for future Aftan distributions.
To preserve that entitlement independently of future ownership of Kazera shares, the board intends to establish a separate contingent value right, or CVR, for qualifying shareholders. Each CVR would provide a proportionate economic entitlement to future Aftan distributions, based on the shareholder’s Kazera holding at the record date.
The company said this structure is intended to ensure qualifying shareholders remain entitled to future Aftan payments even if they later sell their Kazera shares. Investors buying Kazera shares on or after the ex-entitlement date are not expected to receive CVRs or participate in future Aftan distributions.
Depending on how Hebei Xinjian Construction satisfies its settlement obligations, qualifying shareholders are expected to receive either one distribution in early 2027 or three distributions in early 2028, early 2029 and early 2030. A single distribution would apply if Hebei elects to settle early at the discounted amount of US$9.0 million on or before 31 December 2026.
If settlement proceeds are received over time, three distributions are expected, each representing around 80% of net cash proceeds received during the previous calendar year.
The remaining settlement proceeds are expected to be retained to strengthen Kazera’s balance sheet, provide working and investment capital, and support future growth opportunities.
Interim chief executive Richard Jennings said the company had made a clear commitment in June to return the majority of recovered Aftan value directly to shareholders.
He said the proposed CVR structure is designed to ensure the benefit remains with shareholders who supported Kazera through the recovery process.
Jennings added that retaining part of the proceeds should help the company pursue additional value-accretive opportunities without unnecessary future shareholder dilution.
