JOHANNESBURG – South Africa's largest coal producer, Exxaro Resources confirmed on Monday that it has sold back its 26 percent stake in Tronox Sands LLP to the company for consideration of R2.06 billion, or approximately U.S.$148 million, in cash.
In November 2018, Exxaro announced that it would be selling the remainder of its stake in the multinational mineral sands miner and processor following the proposed re-domiciliation of Tronox to the UK.
Exxaro has been a major shareholder in Tronox since 2012. The miner started reducing its stake after saying that the investment was no longer core, saying that it was waiting for the right time to sell its remaining shares.
The disposal by Exxaro of its 26 percent ownership interest in Tronox Sands was originally agreed as part of the 2012 acquisition by Tronox of Exxaro’s mineral sands business.
The acquisition, which is the completion of the first stage of the sale, was being funded through Tronox's 74 percent owned South African subsidiaries and will enable future cash generated in South Africa to be repatriated for general corporate purposes.
Tronox said on Friday that the transaction addresses several legacy issues related to Tronox's 2012 acquisition of Exxaro's mineral sands business and its ongoing relationship with Exxaro.
Jeffry N. Quinn, president and chief executive officer of Tronox, said the completion agreement enabled Tronox to proceed with its re-domiciliation to the UK.
"With the new South African mining charter in the process of being implemented, acquiring full control of our South African operations will increase our earnings from these valuable assets to the benefit of our shareholders," Quinn said.