Exxaro to sell its interest in Tronox mineral-sands miner
The producer’s stake will be diluted to 33% after Tronox agreed a $1.7bn purchase of titanium dioxide business Cristal
Exxaro Resources is looking for an exit from Tronox, a US-listed mineral sands company, after signalling to the market for the past two years that the investment was no longer core. In 2015 and 2016, Exxaro made it clear that Tronox, in which it had a 44% stake worth $911m, was under review and that the board had noted that the investment in Tronox has been "questioned by shareholders for a number of years". It said in 2015 that the titanium oxide market was "taking strain" and then in 2016 it showed the chunky losses Exxaro was reflecting due to its investment in Tronox. On Wednesday, Exxaro said that its stake would be diluted to 33% after Tronox agreed a $1.7bn purchase in cash and shares of titanium dioxide business Cristal. Exxaro notified the US Securities and Exchange Commission on Wednesday that it had decided to "to begin a path to monetise its stake over time" in Tronox. "The monetisation of its Tronox shares will facilitate Exxaro’s focus on and dedication to its core ope...
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