EXX - Exxaro - Exxaro Enters Into Agreement With Potential New Tiwest JV PartnerRelease Date: 31/08/2009 12:28:02 Code(s): EXX
EXX - Exxaro - Exxaro Enters Into Agreement With Potential New Tiwest JV Partner
EXXARO RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2000/011076/06
JSE share code: EXX
ADR code: EXXAY
EXXARO ENTERS INTO AGREEMENT WITH POTENTIAL NEW TIWEST JV PARTNER
Diversified South African-based resources company 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 today 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
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."
Exxaro is one of the largest South African-based resources companies with
interests in the coal, mineral sands, base metals and iron ore commodities.
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.
Wim de Klerk
Tel: + 27 12 307 4848
Mobile: +27 82 652 5145
31 August 2009
Deutsche Securities (SA) (Proprietary) Limited
Date: 31/08/2009 12:28:01 Supplied by www.sharenet.co.za
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