Photo by: Duane Daws
JOHANNESBURG (miningsweekly.com) – Diversified mining company Exxaro Resources on Wednesday announced its intention to begin exiting its stake in mineral sands company Tronox.
The Exxaro board would explore available alternatives to monetise the Tronox shareholding in a thoughtful, efficient and staged process over time, the company said in a Johannesburg Stock Exchange News Service announcement.
Exxaro, which is strongest in coal, currently owns 44% of Tronox, said to be worth an estimated $911-million, based on 51 million Class B shares owned by Exxaro and the $17.80 closing share price as of March 7.
The proceeds would be used on Exxaro’s core operations and to fund capital commitments.
Additionally, Tronox has announced a definitive agreement to acquire the titanium dioxide business of Cristal for $1.6-billion cash and stock representing 24% ownership in pro forma Tronox, which will dilute Exxaro’s current 44% shareholding to 33%.
As Tronox’s largest shareholder, it would vote its shares in favour of the proposed Cristal transaction, Exxaro added in a release to Creamer Media’s Mining Weekly Online.