South32 a step closer to SA coal sale

print

South32 a step closer to SA coal sale

912 views


Published Date: 2020-12-24 | Source: Stephen Gunnion | Author: Stephen Gunnion

South32 a step closer to SA coal sale

The global mining group expects to secure approval from Eskom in time to close the deal by the end of March.

The Competition Tribunal has given the go ahead for South32 to sell its South Africa Energy Coal (SAEC) unit to Seriti Resources. However, it comes with conditions attached including employee retention, the establishment of an Employee Trust, a Community Trust and the divestiture by SAEC of certain (pending) mining rights.

South32 said it expected to secure Eskom's approval in to time close the deal by the end of March.

The global mining group first announced plans to manage SAEC as a stand-alone business in 2017 in a move that would allow it to collapse its regional model and simplify its operations - delivering big cost savings. It previously considered listing the business separately on the JSE and introducing black economic empowerment partners, but later decided on an outright sale.

In August last year, it entered exclusive talks with Seriti, which is co-owned by four black anchor shareholders: Masimong Group, Thebe Investments Corporation, Zungu Investments (Zico) and Community Investment Holdings (CIH).

Seriti said it was confident it would be able to make good progress in the final elements of the transaction in the next few months.

South32's shares declined by 6.7% to R26.17 yesterday.





0 Comments


Similar Stories