South32, the 60 per cent owner of Groote Eylandt, is open to taking full ownership of the manganese mining asset if it is put up for sale by minority shareholder Anglo American. Anglo has vowed to sell everything except its copper, iron ore and crop nutrient assets in a bid to fix its balance sheet and improve shareholder returns. Anglo has yet to clarify if its manganese stake will be sold, but South32 boss Graham Kerr would be keen to buy it. “We would like more manganese if it was sold at the right price,” he said.
_____________________________________________
Nothing new here. Why is it even printed?
AAL will try to create some price tension against S32 with eg a sovereign wealth fund wanting base metals exposure and happy to let S32 manage the JV. Other big miners wouldn't want a minority interest and no prospect of control.
S32 will have pre-emptive rights on a sale and only has to pay (say) $1m more than the best offer. GK just has to wait. The pressure is entirely on AAL.
Another sunset in the decline of the old British Empire.
Ash
S32 Price at posting:
$3.10 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)