Anglo American has announced details of shareholder voting arrangements for the planned demerger of its South African coal assets.
It was announced this week that Anglo American would demerge its South African thermal coal assets, subject to the approval of shareholders at a “court meeting” on May 5.
Anglo’s SA coal operations account for about 3% of group Ebitda (earnings before interest tax, depreciation and amortisation), and is therefore a small part of its global operations.
The demerger involves the transfer of Anglo American’s thermal coal operations in SA to a new holding company, Thungela Resources Limited, along with the demerger of Thungela shares to Anglo American shareholders and a primary listing of Thungela’s shares on the JSE and a standard listing on the London Stock Exchange.
Anglo American chief executive Mark Cutifani said the demerger is part of a planned and responsible transition away from thermal coal as the world transitions to a low carbon economy.
Following the completion of the proposed merger, 100% of the issued share capital of Thungela will be held by Anglo American shareholders who will each receive one Thungela share for every 10 Anglo American shares that they hold.
Each Anglo American shareholder will also retain their existing shareholding in Anglo American.
Thungela will hold 90% of the thermal coal operations in South Africa with the remaining 10% held collectively by an employee partnership plan and a community partnership plan.
Thungela is SA’s leading thermal coal exporter, with seven mining operations – both underground and open cast.
Anglo American announced on Thursday that the relevant high court in the UK had given permission for a “court meeting” of voting scheme shareholders to vote on the proposed scheme of arrangement (the demerger). The meeting has been convened for 17:15 London time on May 5.
Due to Covid restrictions, the “court meeting” will be a closed physical meeting with voting scheme shareholders requested not to attend.
Details of the scheme of arrangement can be found here.
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