Exxaro to reduce Tronox stake


The diversified resources group said it had appointed JP Morgan, Band of America (BofA) Securities, Deutsche Bank Securities and Morgan Stanley as joint book-running managers and underwriters for the offering and had granted them a 30-day option to purchase up to 2.55-million additional Tronox shares at the public offering price.

Tronox is the world’s leading integrated manufacturer of titanium dioxide pigment, globally engaged in the mining, production and marketing of inorganic minerals and chemicals.

If the offering was completed, Exxaro said its ownership in the company would reduce to approximately 5 million shares, or about 3.3% of Tronox’s total outstanding voting shares, assuming no exercise of the underwriters’ option to purchase additional Tronox shares.

The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering,” Exxaro said.
Exxaro said the proposed transaction and potential subsequent disposals were in line with its stated strategy to monetise its stake in Tronox over time in the best possible manner taking into account prevailing market conditions. The funds from the disposal would be used to repay debt, invest in renewable energy projects and make distributions to shareholders in accordance with its capital allocation framework.

Last year, Exxaro bought out joint-venture partner Khopoli Investments to take 100% ownership of Cennergi, which owns wind farms in the Eastern Cape and sells electricity to Eskom.

The company’s shares closed 1% up at R176.57 yesterday.

Main Image: SABC News

About Author

Leave A Reply

Follow   Twitter Facebook LinkedIn