Exxaro to sell 19.5 million shares in titanium unit, Tronox


South Africa’s Exxaro said it is looking at selling about 19.5 million units of shares in Tronox via an American initial public offering, IPO.

Exxaro said in the statement it would now sell 19.5 million shares at $22 each, which compared with the $23.75 at which the stock last traded on the New York Stock Exchange on Wednesday.

Underwriters, J.P. Morgan, Barclays and Morgan Stanley, will have a 30-day option to purchase up to an additional 2.9 million shares, it said.

The expected net proceeds to Exxaro will be approximately$412 million or about $474 million if the underwriters exercise in full their option to purchase additional shares, the company said.

The firm, which now mainly produces coal, is selling its Tronox stake in order to focus on its core activities, provide funding for its future capital commitments, repay debt and return capital to its shareholders.

Exxaro currently owns approximately 51 million Tronox shares, amounting to a 42.7 percent voting stake in the company.
If the offering is completed Exxaro said its voting stake in Tronox would be reduced to approximately 29.4 percent, assuming no exercise of the underwriters’ option to purchase additional shares.

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