South32 (ASX:S32) agree to divest SA Energy Coal

Company News

by Rachael Jones

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.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.