Exxaro Resources has concluded the sale of its ferroalloys business to a consortium led by EverSeed Energy for R250m.
The group said it remained committed to slimming down its portfolio and focused on its coal, renewable energy and energy transition metals operations.
The EverSeed transaction, which took effect on October 31, transfers Exxaro’s entire shareholding in Exxaro FerroAlloys to EverSeed Metal Powders, a subsidiary of EverSeed Energy. The business produces ferrosilicon for industrial customers in SA.
Under the new ownership structure, EverSeed holds a 60% stake, FerroAlloys management 30% and an employee share ownership plan 10%. The management team will continue to run the business.
The R250m consideration was funded with commercial debt provided by Nedbank, equity from the acquiring shareholders and a combination of vendor finance provided by Exxaro and deferred payments.
Exxaro said the disposal supported its effort to simplify its portfolio and redeploy capital towards its energy business and growth in minerals linked to the energy transition.
“The decision forms part of the company’s strategy to focus on its core operations and position for future growth in the changing energy landscape,” said Exxaro CEO Ben Magara.
EverSeed Energy, a 100% black-owned investment company active in the resources and energy sectors, said the purchase of FerroAlloys was aligned with its plans to expand its industrial portfolio.
“The structure of the deal — involving management and employee participation — was intended to ensure operational stability and continuity,” said CEO EverSeed Kerwin Rana.
FerroAlloys general manager Thindo Nemavhola said the company intended to build on its local market position and pursue export opportunities through its existing licence.
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