Anglo American announces sale of Eskom-tied thermal coal operations in South Africa
2017-04-18 15:58:11 【Print】
BEIJING (Asian Metal) 18 Apr 17 - Anglo American plc ("Anglo American") announced the sale of its Eskom-tied domestic thermal coal operations in South Africa to a wholly owned subsidiary of Seriti Resources Holdings Proprietary Limited ("Seriti"), a company majority owned by historically disadvantaged South Africans ("HDSAs") and led by a management team with extensive experience of operating and developing large coal mines in South Africa ("the Transaction").
The Eskom-tied domestic thermal coal operations consist of the New Vaal, New Denmark and Kriel collieries, as well as four closed collieries (the "Operations") . The Transaction will result in Seriti becoming the second largest provider of thermal coal to Eskom, supplying almost a quarter of Eskom's current annual coal requirements.
The consideration payable for the Operations as at 1 January 2017 is ZAR2 . 3 billion (approximately US$164 million) . Under the terms of the Transaction, the consideration payable will be adjusted for cash flows generated by the Operations between 1 January 2017 and the date on which the transaction is completed in order to determine the final payment to be made by Seriti upon completion.
The Transaction is expected to close by the end of 2017.