Exxaro puts some Tronox shares up for sale
Wednesday, February 24, 2021 - 6:29:27 PM
Mining Weekly

Tronox, an integrated titanium dioxide pigment manufacturer, on February 23 exercised its “flip-in” call option over Exxaro’s 26% shareholding in Tronox’s South African subsidiaries.

In exchange, Tronox is delivering to Exxaro about 7.2-million newly-issued Tronox ordinary shares.

Exxaro in a transaction undertaken in 2012 contributed part of its mineral sands operations to Tronox in exchange for Tronox shares, whereby Exxaro and Tronox granted each other a “flip in” right such that, following the occurrence of certain events, Tronox or Exxaro could exercise its option to exchange Exxaro’s 26% shareholding in Tronox’s South African operating subsidiaries for an additional 7.2-million Tronox shares.

With these additional Tronox shares, Exxaro owns about 22-million Tronox shares, which represents about 14.6% of Tronox’s total outstanding voting shares.

If the public offering is completed, Exxaro’s ownership in Tronox would be reduced to about five-million shares, or 3.3% of Tronox’s total outstanding voting shares.

The proposed transaction and potential subsequent disposals are in line with Exxaro’s 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 proposed disposal of Tronox shares will be used to repay debt, invest in renewable energy projects and make distributions to shareholders in accordance with Exxaro’s capital allocation framework


http://www.miningnewspro.com/en/News/611558/Exxaro puts some Tronox shares up for sale
Close   Print