Diversified mining giant Anglo American will sell its 35 million ordinary shares in JSE -listed mining company Exxaro Resources.
The share capital will be sold, via an accelerated bookbuild placing to institutional investors, at a price of R87 per share, which represents a 10% discount on the closing price of the share on 30 November 2016.
Following the completion of the placement, Anglo American will no longer hold a direct equity interest in Exxaro.
Anglo American said in a statement that Exxaro’s controlling black econmic empowerment partner Main Street 333 will also sell 17 million of its shares in Exxaro, and together, these placement shares represent about 14.7% of Exxaro’s issued share capital.
Exxaro recently announced that it was unwinding its BEE agreement and will introduce a new black economic empowerment scheme once it is completed.
Under Exxaro’s first BEE transaction, Main Street333 was obliged to hold more than 50% of its shares up to 28 November this year.