ArcelorMittal, the integrated steel and mining company, on Thursday said it has decided to sell 50 per cent stake in Kalagadi Manganese (Pty) Ltd for $447 million.
Kalagadi Manganese is promoted by ArcelorMittal (50 per cent), Kalahari Resources (40 per cent) and IDC (10 per cent). It is involved in the exploration for Manganese in the Kalahari Basin in South Africa.
Lakshmi N Mittal-promoted ArcelorMittal will sell its stake to Daphne Mashile-Nkosi, who is Chairperson of Kalagadi Manganese or her nominee, the miner said in a statement issued from Luxembourg.
Her nominee may be a consortium consisting of some of the existing Kalahari Resources shareholders or other third parties, it said. The sale and purchase agreement was executed on November 14.
After 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.