New Delhi/Luxembourg: The world's largest steelmaker ArcelorMittal on Thursday said it has reached a pact to sell its 50 percent stake in South African miner Kalagadi Manganese for USD 447 million to chairperson of joint venture partner Kalahari Resources.
"A definitive agreement has been reached whereby Mashile-Nkosi, or her nominee will acquire ArcelorMittal's 50 per cent interest in Kalagadi Manganese," ArcelorMittal said in a statement.
The company said it will receive "a cash consideration of not less than R3.9 billion (three billion nine hundred million South African Rand), which is approximately USD 447 million, on closing of a sale and purchase agreement (SPA)."
The proposed transaction will be subject to financing arrangements.
The SPA was executed on 14 November 2012, and on completion of the transaction Kalahari Resources will hold 40 per cent interest in Kalagadi Manganese; Mashile-Nkosi, or her nominee, will hold 50 per cent with the remaining 10 per cent interest held by the Industrial Development Corporation of South Africa Ltd.
Mashile-Nkosi is the executive chairperson of the Kalagadi Manganese. She is also the chairperson and founder of Kalahari Resources and holds a number of positions in other South Afrincan firms with a strong background in the fields of business, banking, politics and gender issues.
Completion of the proposed transaction will also be subject to the waiver of pre-emptive rights of the other shareholders, customary corporate approvals and various regulatory approvals.
Kalagadi Manganese has been involved in the exploration for Manganese in the Kalahari Basin.