(Alliance News) - South32 Ltd on Monday said it now expects the transfer of its shareholding in South32 SA Coal Holdings Pty Ltd to Seriti Resources Holdings Pty Ltd to complete following the end of the March quarter.
Previously, South32 said it was on track to close the transaction during the March quarter.
The deal was agreed back in November 2020, when miner South32 said it would sell its 92% holding in the coal subsidiary for an upfront payment of ZAR100 million.
The consideration also includes a deferred payment which will see South32 receive a portion of the cash flow generated by the unit, capped at ZAR1.5 billion. The London, Sydney and Johannesburg listed company will earn 49% of cash generated between the completion of the transaction and March 2024.
South32 shares closed 4.0% higher in Sydney on Monday at AUD2.86 each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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South32 (S32)