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ArcelorMittal signs $447 mn sale pact

ArcelorMittal signs $447 mn sale pact

ArcelorMittal has entered into a sale and purchase agreement (SPA) with the head of its joint venture partner Kalahari Resources for sale of its 50 percent stake in South African miner Kalagadi Manganese for $447 million.

According to the agreement, Mashile-Nkosi, or her nominee will acquire ArcelorMittal’s 50 per cent interest in Kalagadi Manganese, ArcelorMittal said in a statement.

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 African firms with a strong background in the fields of business, banking, politics and gender issues.

Through the sale of its stake, the world’s largest steelmaker would get at least Rs 3.9 billion (three billion nine hundred million South African Rand), which is approximately $447 million, reports suggest. The proposed transaction will be subject to financing arrangements.

Following this 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.

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.

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