23rd Dec 2020 09:34
(Alliance News) - Diversified metals and mining firm South32 Ltd on Wednesday noted the approval by the Competition Tribunal of South Africa of the company's sale of its interest in South Africa Energy Coal to Seriti Resources Holdings Pty Ltd.
The deal was agreed back in November, when South32 said it would 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 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.
"The approval of the transaction by the Competition Tribunal marks an important step on the path to completing the sale of South Africa Energy Coal. While the transaction remains subject to material conditions, including approvals from Eskom, we continue to make progress in securing these and remain on-track to close during the March 2021 quarter," said South32 Chief Executive Officer Graham Kerr.
Shares in South32 were marginally lower at 140.79 pence on Wednesday in London, while its Johannesburg shares were 1.9% lower at ZAR27.51.
By Dayo Laniyan; [email protected]
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