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Exxaro enters into agreement with potential new Tiwest JV partner
Date released: 31 August 2009
Diversified South African-based resources company Exxaro Resources Limited (Exxaro) (JSE: EXX) today announced that it has entered into an agreement with Huntsman Corporation (Huntsman) (NYSE: HUN) in relation to the potential transfer of Tronox Western Australia Pty Limited’s joint venture (JV) interests in Tiwest to Huntsman.
Exxaro operates the Tiwest mineral sands operations in Western Australia in a 50:50 JV with Tronox Western Australia.
Exxaro has agreed that certain JV contractual restrictions, including an applicable right of first refusal and change of control rights, will be waived in the event that Huntsman is approved by the United States Bankruptcy Court as the buyer of the Tronox Western Australia assets.
Huntsman has announced that the company has signed a “stalking horse” purchase agreement in which its wholly-owned subsidiary, Huntsman Pigments LLC, has agreed to acquire certain assets of Tronox Incorporated (Tronox) and its subsidiaries, including the 50% interest in Tiwest. A stalking horse bid is a binding proposal from an interested buyer chosen by the bankrupt company to acquire assets, subject to a higher or better offer acquired through an auction process approved by the bankruptcy court. The sale is subject to bankruptcy court approval.
Tronox and certain of the company’s subsidiaries filed voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code on January 12, 2009. Once the court has approved an auction process and protections for the stalking horse bidder, other potential buyers may submit competing bids for the bankrupt company’s assets. The final winner of the assets will be determined by auction which forms part of the so-called Section 363 Sales Process under Chapter 11 of the US Bankruptcy Code. If Huntsman ultimately is approved by the bankruptcy court as the buyer and the sale is approved, Huntsman’s completion of the proposed acquisition of the assets of Tronox as agreed remains subject to customary antitrust and other regulatory approvals.
Sipho Nkosi, chief executive officer of Exxaro, said: “It is important for Exxaro to continue to have an experienced and technologically advanced partner at Tiwest. Huntsman is such a partner and they will bring significant technical knowledge and marketing competence to the pigment side of the business. We are satisfied that Huntsman was selected as the stalking horse bidder and look forward to working with them.”
About Exxaro:
Exxaro is one of the largest South African-based resources companies with interests in the coal, mineral sands, base metals and iron ore commodities.
www.exxaro.com
About Huntsman:
Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Huntsman operates from multiple locations worldwide.
www.huntsman.com
Enquiries:
Wim de Klerk
Financial director
Tel: + 27 12 307 4848
Mobile: +27 82 652 5145
Email: wim.deklerk@exxaro.com
31 August 2009
Pretoria
Financial advisor
JPMorgan
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
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