Multinational mining company Anglo American has agreed to sell nearly 35 million ordinary shares in Exxaro Resources, with an interest of 9.7%, and at a price of ZAR87 ($6.18) per share.
Major Exxaro shareholder Main Street 333 will also sell approximately 17 million of its shares in Exxaro Resources.
The sale of Anglo American shares has raised gross proceeds of approximately ZAR3bn ($215m), which will be used to reduce the company's net debt.
The placement of these shares constitute nearly 14.7% of Exxaro’s issued share capital.
After the sale, Anglo American will no longer hold a direct equity interest in Exxaro.
Citigroup Global Markets Limited acted as the sole bookrunner on this placement.
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As per Exxaro’s first BEE transaction, Main Street 333 was obliged to hold more than 50% of its shares up to 28 November 2016, reported Miningreview.com.
Based in Johannesburg and London, Anglo American is one of the largest producers of platinum, and has substantial interests in diamonds, copper, nickel, iron ore and metallurgical and thermal coal mining.