Thungela buys remaining stake in Anglo American Inyosi Coal for shares

(Alliance News) - Thungela Resources Ltd said on Thursday it had reached an agreement with its black economic empowerment partner Inyosi Coal Pty Ltd to acquire the remaining interest in Anglo American Inyosi Coal Pty Ltd in exchange for shares in Thungela.

Thungela has a 73% interest in Anglo American Inyosi Coal.

On completion of this acquisition, the Rosebank-based coal miner will acquire the remaining 27% stake and own 100% of Anglo American Inyosi Coal, whose assets include the Zibulo operation and the Elders production replacement project.

Thungela will fund the acquisition by issuing 4.2 million new shares to Inyosi, which represents a 3.02% holding.

Taking the current share price of Thungela, this interest is valued at about ZAR1.2 billion. Thungela has a market capitalisation of ZAR37.73 billion.

Its shares gained 2.8% at ZAR276.79 on Thursday afternoon in Johannesburg. In London, the stock rose by 1.1% to 1,333.00 pence.

The non-controlling interest attributable to 27% shareholding in Anglo American Inyosi Coal was ZAR696 million for six months that ended June 30, Thungela said.

"The transaction marks a new chapter in our relationship with Inyosi, as we unlock value and liquidity for Inyosi as they transition from asset partners to investors in Thungela. The transaction also underscores Thungela'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," Thungela Chief Executive July Ndlovu said.

By Artwell Dlamini; [e-mail]

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