LONDON ArcelorMittal SA has agreed to sell its 50-percent stake in South Africas Kalagadi Manganese (Pty) Ltd. to Daphne Mashile-Nkosi or her nominee for 3.9 billion rand ($441 million), the company said Thursday.
Mashile-Nkosi is executive chairwoman of Kalahari Resources (Pty) Ltd., which owns 40 percent of Kalagadi Manganese. Luxembourg-based ArcelorMittal has been in contention with Johannesburg-based Kalahari over a shareholder agreement since June.
Mashile-Nkosis nominee could be a consortium consisting of Kalahari Resources shareholders or other third parties, ArcelorMittal said.
ArcelorMittal will receive a cash consideration of no less than 3.9 billion rand. The proposed transaction is subject to financing arrangements.
The share purchase agreement was arranged Nov. 14. Upon completion of the transaction, Kalahari Resources will hold a 40-percent interest in the Johannesburg-based company, while Mashile-Nkosi or her nominee will hold 50 percent.
The remaining 10-percent interest will continue to be held by Sandton, South Africa-based Industrial Development Corp. of South Africa Ltd.
Completion of the planned transaction will also be subject to the waiver of pre-emptive rights of the other shareholders, as well as corporate and regulatory approvals.