South Africa’s Exxaro Resources begins selling stake in Tronox

South Africa-based Exxaro Resources Ltd. has begun the process of selling its 42.7 percent stake (51 million shares) in NYSE-listed mining company Tronox Limited, according to a company statement on Monday.

In the first stage, Exxaro plans to sell 16 million Class A ordinary shares, or 31.3 percent, and will grant the underwriters a 30-day option to purchase up to 2.4 million additional shares.

The sale price and duration of the offering is subject to market conditions, the company said, adding that it plans to sell the remaining shares gradually in the future.

Exxaro announced in March that it intends to sell its stake in Tronox in order to focus on its core activities, provide funding for future capital commitments, and repay debt.

Tronox unveiled plans in February this year to buy the titanium dioxide business of Cristal, which is 79-percent owned by Tasnee, for $1.67 billion cash and 37,58 million of newly issued Class A shares in Tronox.

The company said on Tuesday that its shareholders had approved issuing new shares to acquire Cristal’s titanium dioxide business.