Exxaro sells back 26 percent stake to Tronox Sands
The sale is worth R2 billion.
South Africa’s largest coal producer, Exxaro Resources, said on Monday that it had sold back its 26 percent stake in Tronox Sands LLP to the company for R2.06 billion in cash.
Exxaro announced last year that it would be selling the remainder of its stake in the multinational mineral sands miner and processor following the proposed re-domiciliation of Tronox to the UK.
According to a report by African News Agency, Exxaro has been a major shareholder in Tronox since 2012. The miner started reducing its stake after saying that the investment was no longer core, saying it was waiting for the right time to sell its remaining shares.
The disposal by Exxaro of its 26 percent ownership interest in Tronox Sands was originally agreed as part of the 2012 acquisition by Tronox of Exxaro’s mineral sands business.
The acquisition, which is the completion of the first stage of the sale, was being funded through Tronox’s 74 percent-owned South African subsidiaries, and would enable future cash generated in South Africa to be repatriated for general corporate purposes.
Tronox said on Friday that the transaction addresses several legacy issues related to Tronox’s 2012 acquisition of Exxaro’s mineral sands business and its ongoing relationship with Exxaro.