Exxaro to sell slice of its Tronox stake
The funds will be used for capital projects, debt repayment and to return capital to shareholders
Exxaro Resources is to sell up to 18.4-million shares, or a third of the stock it holds in New York-listed titanium products company Tronox, worth about $397m or R5.43bn. The funds would be used for capital projects, debt repayment and to return capital to shareholders, it said on Tuesday. Exxaro’s shares surged as much as 5.8% to R132.92 on the news, before correcting slightly to trade about 5% higher. They have gained about 52% since the end of June. Exxaro’s executive head of stakeholder accountability Mzila Mthenjane said the specific return of cash had not yet been determined, but it would be through either a share buyback or special dividend. Avior Capital Markets analyst Matthew Shields said the Tronox share sale could result in an additional share buyback after Exxaro had fully exited its investment, but it was difficult to predict how large it would be as Exxaro had capex commitments until 2022. Exxaro has also announced a buyback of about R2.7bn of its shares as part of a...
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