Miner and metals traded OM Holdings Ltd
(ASX:OMH) says it has secured a $294 million deal to acquire a major stake in a South African manganese project which it says will help the company transform into one of the world’s largest independent manganese companies.
The company says it is to acquire a 49.9 per cent interest in the Tshipi Project from a group of five non-related co-investors in exchange for 139.9 OM Holdings shares valued at $245 million.
The company has also agreed to acquire a 20 per cent interest in a South African Black Economic Empowerment company which owns the remaining 50.1 per cent of the Tshipi Project for $49.2 million in cash.
OMH says it is seeking a secondary listing on The Main Board of the Stock Exchange of Hong Kong.
Chairman Mr Low Ngee Tong says the deal will potion OMH as one of the world’s leading globally integrated manganese companies.
Mr Tong says this transaction represents the first major step towards its objective of increasing OMH’s manganese ore resource base more than five-fold and at the same time begins the process of building a major steel feed materials business.
After posting a loss in 2006, OM Holdings pulled itself out of the red to post a profit in 2007 and 2008.
