South32 pushes out end date for coal sale

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South32 pushes out end date for coal sale

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Published Date: 2021-03-30 | Source: Stephen Gunnion | Author: Stephen Gunnion

South32 pushes out end date for coal sale

The diversified mining company says work is progressing to finalise arrangements that will underpin the sustainability of the business.

South32 says it is only likely to wrap up the sale of South Africa Energy Coal (SAEC) to Seriti Resources after the end of its March quarter as it continues negotiations with Eskom. In January, it expected to conclude the deal by the end of March.

The diversified mining company 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 2019, the company 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).

The Competition Tribunal approved the deal in December with conditions, including employee retention, the establishment of an Employee Trust, a Community Trust and the divestiture by SAEC of certain (pending) mining rights.

Its shares rose 1.4% to R32.45 yesterday.





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