Exxaro grants Tronox option to buy 24% stake
Diversified miner Exxaro Resources has granted NYSE-listed mining and inorganic chemicals company Tronox the option to buy Exxaro's remaining 24% interest in Tronox.
Exxaro in 2012 merged its mineral sands operations with those of Tronox. It held about 38.5% of Tronox following the merger but sold 22.4-million Tronox shares for about R6.5-billion last year.
It still holds about 28.7-million shares in Tronox and announced in April that it planned to sell the remaining interest in Tronox to focus on its core activities, fund capital commitments, repay debt and pay distributions to shareholders.
Although Tronox has the option to buy Exxaro's 24% interest, it is not obligated to do so.
Nevertheless, Exxaro has agreed to structure the divestiture of its interest in a controlled and scheduled manner but expects to conclude this during the first half of 2019.
In the meantime, it has also agreed to support Tronox' proposed redomiciling to the UK from Australia.
Tronox on Tuesday announced it would arrange a shareholders meeting for the first quarter of 2019 to seek approval for the redomiciling.
It stated that the redomiciling would provide the Tronox board with greater authority and flexibility to undertake share repurchases than under Australian law; eliminate the current dual-class share structure and, consequently, the requirement for certain matters to be approved by both classes voting separately; 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.
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