South32 (ASX:S32) have entered into a binding conditional agreement for the sale of their 91.84 per cent shareholding in South32 SA Coal Holdings Proprietary.
The sale is to a wholly-owned subsidiary of Seriti Resources Holdings Proprietary and two trusts which will acquire and hold equity on behalf of employees and communities.
With satisfied conditions, Seriti will make an up-front cash payment of approximately 100 million South African Rand ($9,804,370.38 AUD) to acquire South32’s shares.
in SAEC1 . The purchase price also includes a deferred consideration component where South32 will receive 49 per cent of the free cash flow generated by SAEC for a period commencing at the date of completion to March 2024, with payment capped at a maximum of 1.5 billion South African Rand per annum.
Shares in South32 (ASX:S32) closed 2.71 per cent higher to $2.65 yesterday.