21st Dec 2020 06:33
(Alliance News) - South32 Ltd on Monday said the Competition Tribunal of South Africa has completed its hearing to consider the proposed sale of its shareholding in South Africa Energy Coal to Seriti Resources Holdings Pty Ltd.
The Perth, Western Australia-based mining and metals company said the SA regulator is expected to announce its decision within ten business days.
The deal was agreed back in November, when South32 said it will sell its 92% holding in coal subsidiary for an upfront payment of ZAR100 million. The consideration also includes a deferred payment which will see South32 receive a portion of the cash flow generated from by the unit, capped at ZAR1.5 billion. The London, Sydney and Johannesburg listed company will earn 49% of cash generated between the completion of the transaction and March 2024.
South32 noted that it still expects to complete the transaction during the March 2021 quarter.
Separately, the company said state-owned utility firm Eskom Holdings SOC Ltd has submitted a new energy supply agreement for its Hillside Aluminium smelter to the National Energy Regulator of South Africa.
The new agreement is to cover power supplied for a ten-year period with a tariff that is South African rand based.
The National Energy Regulator of South Africa approval process is expected to be concluded during the June 2021 half year.
South32 shares closed 0.4% lower in Sydney on Monday at AUD2.56 each.
By Evelina Grecenko; [email protected]
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