Diversified miner Exxaro Resources on Monday confirmed that NYSE-listed mining and inorganic chemicals company Tronox has completed the first stage of its redomiciliation, whereby it has acquired Exxaro’s remaining ownership interest in Tronox Sands for just over R2.06-billion, or about $148-million.
Exxaro in 2012 merged its mineral sands operations with those of Tronox Sands and initially held about 38.5% of the merged entity. In 2017, it sold about 22.4-million Tronox Sands shares for about R6.5-billion.
It announced in April 2018 that it planned to sell its remaining interest in Tronox to focus on its core activities, fund capital commitments, repay debt and pay distributions to shareholders.
Tronox, meanwhile, is redomiciling to the UK, from Australia.
It said in November 2018 that the redomiciling would provide the Tronox board with greater authority and flexibility to undertake share repurchases than under Australian law and would eliminate the current dual-class share structure and, consequently, the requirement for certain matters to be approved by both classes voting separately.
It would also align Tronox’s jurisdiction of incorporation with its peers and the majority of other non-US companies listed on the NYSE and enable Tronox to create an organisational and legal structure that more efficiently manages a global business.