Exxaro sale raises hopes of dividend
The diversified miner says the funds will be used for capital projects, debt repayment and to return capital to shareholders
Diversified miner Exxaro Resources sold R6.54bn worth of shares in New York-listed Tronox, raising hope among analysts of a special dividend payment at the end of its financial year. Exxaro, once the dominant shareholder in the US-based mineral sands miner and chemical maker, which has assets in SA and Australia, has clearly flagged its intentions of disposing of its stake in the company. The disposal of 22.4-million Tronox shares brought Exxaro’s remaining stake to 24%. The stake is locked in for 90 days after the sale of shares in the unprofitable company. “[The] management will continue to assess market conditions … for further possible sell-downs in its remaining Tronox investment, and shareholders will be advised accordingly,” Exxaro said. Exxaro’s shares rose 1% on Wednesday, giving it a market capitalisation of R43.5bn. Exxaro said that it would use the proceeds from the sale of Tronox, which had a carrying value of R3.2bn at the end of June, towards “future capital commitmen...
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