Anglo American to Demerge South African Thermal-Coal Business

By Jaime Llinares Taboada

Anglo American PLC said Thursday that it will demerge its thermal coal operations in South Africa.

The FTSE 100 mining company said it will transfer its thermal coal business in South Africa to a new holding company, Thungela Resources Ltd.

Anglo American said the demerger recognizes its shareholders' diverse range of views regarding thermal coal, providing them with the chance to either retain, increase or decrease their interests in Thungela. As for Thungela, AA said the transaction allows it to attract new shareholders and capital sources.

Anglo American said it will inject an initial 2.5 billion South African rand ($171.6 million) into Thungela, plus further contingent capital support until the end of 2022. It will also support it with the sale and marketing of its products for a three-year period.

The demerger is subject to shareholder approval, which will be sought at a general and court meeting expected to be held on May 5. Anglo American expects Thungela's shares will be admitted to trading in Johannesburg and London on June 7.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

April 08, 2021 02:30 ET (06:30 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.