Exxaro to sell 44% stake in chemical maker Tronox

South African miner Exxaro Resources plans to sell its 44 percent stake in US-based chemical producer Tronox to focus more on its core mining activities, the company said in a statement Wednesday.

Exxaro’s management and board decided to sell their New York-listed stake over an unspecified period of time.

“Based on a careful strategic review by our management and our board, and after due consideration of the various alternatives available to us, Exxaro has decided that the monetisation of our Tronox shares over time is in the best interest of our shareholders and in accordance with our long-term strategic focus of creating value in our core operations,” said Len Konar, Exxaro's Chairman.

Tronox in February signed a definitive agreement to acquire the titanium dioxide business of Cristal, which is 79 percent-owned by National Industrialization Co. (Tasnee), for $1.67 billion of cash and Class A ordinary shares representing 24 percent ownership in pro forma Tronox.

Exxaro did not say if the stake sale is relevant to Tronox’s acquisition of Cristal, which would reduce Exxaro’s stake to 33 percent from 44 percent.

“Pro forma for the Tronox and Cristal transaction, Exxaro’s ownership would be diluted to approximately 33 percent,” the company said in the statement.