30th Nov 2016 16:03
LONDON (Alliance News) - Anglo American PLC on Wednesday said it plans to sell its entire stake in Exxaro Resources Ltd, worth just under GBP200 million, as part of its asset-disposal programme to raise funds and pay down debt.
The FTSE 100-listed miner is taking part in a share sale transaction with Exxaro's controlling black economic empowerment shareholder, Main Street 333 Proprietary Ltd, which is also selling shares.
Anglo American will sell 35.0 million shares in Johannesburg-listed Exxaro, its entire 9.7% stake, while Main Street 333 will sell an additional 17.0 million shares, equal to a 5.0% stake. An accelerated bookbuild process will be carried out by Citigroup Global Market Ltd.
The price that will be secured for the shares will not be known until the bookbuild process is completed.
Exxaro is a large coal and heavy minerals mining company in South Africa with a market capitalisation of around ZAR34.95 billion, roughly around GBP1.98 billion.
Anglo American shares were down 1.0% to 1,193.00 pence per share on Wednesday.
By Joshua Warner; [email protected]; @JoshAlliance
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