Kumba finalises split into two companies

JOHANNESBURG – South Africa’s biggest iron ore producer, Kumba Resources, said on Wednesday a plan to split the group into two separate companies has been finalised and is due to be implemented by late November.

“Kumba shareholders are advised that all legal agreements necessary to implement the transaction have been finalised,” a statement said. Kumba, majority owned by mining giant Anglo American Plc, said last October it would split into an iron-ore firm and a coal, heavy minerals and base metals company to be named Exxaro Resources, which would be the country’s biggest black-owned firm.Shares in the new Kumba Iron Ore firm are due to start trading on November 20, while Exxaro shares will begin trading a week later after the unbundling.Kumba brought in unlisted black-owned group Eyesizwe Coal as a major shareholder in Exxaro as part of South Africa’s Black Economic Empowerment drive aimed at bringing more blacks into the mainstream economy after years of exclusion under apartheid.The complex deal will cut Anglo’s stake in Kumba to a minority holding.Shares in Kumba closed down 1,89 per cent at 130,50 rand, underperforming a slightly stronger Top-40 share index.Nampa-ReutersKumba, majority owned by mining giant Anglo American Plc, said last October it would split into an iron-ore firm and a coal, heavy minerals and base metals company to be named Exxaro Resources, which would be the country’s biggest black-owned firm.Shares in the new Kumba Iron Ore firm are due to start trading on November 20, while Exxaro shares will begin trading a week later after the unbundling.Kumba brought in unlisted black-owned group Eyesizwe Coal as a major shareholder in Exxaro as part of South Africa’s Black Economic Empowerment drive aimed at bringing more blacks into the mainstream economy after years of exclusion under apartheid.The complex deal will cut Anglo’s stake in Kumba to a minority holding.Shares in Kumba closed down 1,89 per cent at 130,50 rand, underperforming a slightly stronger Top-40 share index.Nampa-Reuters