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Exxaro reaches deal about selling stake in US Tronox

  • Nov.28,2018
  • Source: ICIS News

South African miner Exxaro Resources has agreed to sell its remaining 24% stake in Tronox in a controlled and scheduled manner, Tronox said on Monday.

Exxarro is the largest shareholder in Tronox.

Exxaro also granted Tronox the option, but not the obligation, to buy any shares that Exxaro chooses to sell, Tronox said.

Tronox also agreed to speed-up the purchase of Exxaro's 26% stake in a Tronox UK subsidiary, Tronox said. This subsidiary holds loans that were made to two Tronox subsidiaries in South Africa.

Exxaro also agreed to support Tronox's bid to change its domicile from Australia to the UK, Tronox said.

Tronox will hold a shareholder meeting in the first quarter of 2019 to approve the bid to change its domicile, the company said.

The move will create a new holding company named Tronox Holdings PLC.

By becoming domiciled in the UK, Tronox said it would have more authority and flexibility to buy back its own shares. The move will also eliminate Tronox's dual-class share structure.

This structure required Tronox to get approval from both classes of shareholders for certain items.

Tronox makes titanium dioxide (TiO2).