Thungela Increases Its Interest In Zibulo Operation And Elders Project To 100%
Thungela Increases Its Interest In Zibulo Operation And Elders Project To 100%. Thungela announces that it has reached an agreement with its BEE partner, Inyosi Coal(RF) Proprietary Limited (“Inyosi”), to acquire the 27% shareholding of ordinary sharesof Anglo American Inyosi Coal Proprietary Limited (“AAIC”) currently owned by Inyosi in exchange for shares in Thungela. Pursuant to the Transaction, Thungela will own 100% of AAIC, whose assets include the Zibulo operation and the recently approved Elders production replacement project. The Transaction enables Inyosi to obtain an interest in Thungela while simultaneously transforming its interest into a more liquid position in a publicly traded entity.
Thungela CEO, July Ndlovu, said: “The Transaction marks a new chapter in ourrelationship with Inyosi, as we unlock value and liquidity for Inyosi as they transition from asset partners to investors in Thungela. The Transaction also underscoresThungela’s commitment to sound capital discipline as we invest in a highly cash-generative asset that we know exceptionally well – our own operations and project opportunities such as Elders.”
The Group will fund the acquisition of the shares in AAIC through issuing 4,180,777 new Thungela ordinary no par value shares, which will be allotted and issued to Inyosi. Inyosi will own approximately 3.02% of the ordinary no par value shares which carry voting rights in Thungela. Inyosi’s shares in Thungela are subject to an orderly markets disposal provision, which includes an initial 30-day period during which no more than 20% of the newly allotted shares may be sold.
The acquisition of the 27% stake in AAIC is aligned to Thungela’s strategy as it seeks to maximise the full potential of existing assets and optimise capital allocation. As a result of the Transaction, which is anticipated to be earnings accretive, the group will benefit from the full economics of the Zibulo operation and the Elders production replacement project, resulting in an uplift to earnings attributable to equity owners of Thungela.
