Sector News

Tronox agrees to buy Exxaro’s minority interest in mineral sands subsidiary

February 18, 2019
Chemical Value Chain

Tronox Limited said on Friday that it had agreed to acquire Exxaro’s 26% interest in Tronox Sands LLP, a UK limited liability partnership, for approximately 2.06 billion South African rand (approximately $148 million) in cash.

Tronox Sands produces the titanium dioxide raw materials, ilmenite, rutile and leucoxene, together with zircon. The redemption is being wholly funded by cash currently held in Tronox’s 74% owned South African subsidiaries and will enable future cash generated in South Africa to be repatriated for general corporate purposes. Tronox, which is listed in the US, also says that Exxaro, its largest shareholder, will continue to support its bid to change its legal domicile from Australia to the United Kingdom, which it says will provide more authority and flexibility to buy back its own shares as well as eliminate its dual-class share structure.

The Tronox Sands deal is the first step in a series of transactions envisaged in the Mineral Sands Transaction Completion Agreement announced on 26 November 2018, relating to Tronox’s 2012 acquisition of Exxaro’s mineral sands business and its ongoing relationship with Exxaro. Exxaro, a coal and metals mining group, holds a 24% interest in Tronox itself, after having initially received a 38.5% stake in the US company in exchange for Exxaro’s mineral sands interests in Australia and South Africa. It is committed to an orderly and controlled disposal of its remaining Tronox stake in 2019.

Jeffry Quinn, president and CEO of Tronox, said, “The Completion Agreement enables Tronox to proceed with its redomiciliation to the UK, ensures an orderly sale of Exxaro’s Tronox shares, including the option to directly repurchase any shares Exxaro elects to sell, and facilitates our ability to purchase Exxaro’s 26% ownership interest in our South African subsidiaries. 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.”

Tronox will formally initiate the process of redomiciling to the UK at a general shareholders’ meeting to be held in the near future. Redomiciling will be effected by “top-hatting” Australian-incorporated Tronox Limited with a new holding company, Tronox Holdings PLC, incorporated under English law. Each Tronox shareholder will receive one share in the newly incorporated UK company in exchange for each share held in Tronox Limited, which will be listed on the NYSE.

By Natasha Alperowicz

Source: Chemical Week

Join the discussion!

Your email address will not be published. Required fields are marked *

Related News

January 17, 2021

Neste and Avfuel join forces for U.S. sustainable fuel supply 

Chemical Value Chain

Neste will provide Avfuel with SAF in volumes able to meet the growing demands of Avfuel’s customers, including fixed base operators (FBOs), airports, flight departments, original equipment manufacturers (OEMs) and commercial operators.

January 17, 2021

Borealis and Tomra start up advanced recycling plant in Germany 

Chemical Value Chain

Operation of the plant is a joint enterprise between Borealis, TOMRA and Zimmermann. Borealis is responsible for the plant’s commercial success and contributes its expertise and knowledge in innovation, recycling and compounding.

January 17, 2021

Johnson Matthey appoints Stephen Oxley as Chief Financial Officer

Chemical Value Chain

Johnson Matthey announces that Stephen Oxley will join the company’s board on 1st April 2021 as Chief Financial Officer (CFO).

Send this to a friend