Today, the JSE welcomed diversified resources Group South32 to the exchange’s Main Board. South32, the fifth listing on the JSE this year, is a secondary listing with its primary listing being on the Australian Stock Exchange.
South32’s listed on the Mining sector of the Main Board and brings the total market capitalisation of the sector to R2.13 trillion comprising 17% of the overall JSE market capitalisation.
In 2014, BHP Billiton announced that it would reposition its portfolio to focus on five core assets of iron ore, petroleum, coal, copper and potash basins. South32’s listing follows the unbundling of BHP Billiton’s assets, which was aimed at simplifying the group, reducing costs and unlocking shareholder value. As an independent entity, South32 will now be a diversified metals and mining company with a portfolio of assets in alumina, coal, manganese, nickel, silver lead and zinc. South32 will hold coal, silver, manganese and lead mines in SA, Australia, Mozambique and Colombia.
Commenting on the announcement, JSE Director of Capital Markets Donna Oosthuyse says: “South32’s debut on the JSE is an exciting development. We are particularly pleased that the Group has chosen the JSE as a listing destination and gateway tap into Africa’s capital markets. South32’s listing today illustrates the company’s commitment to continue to execute its growth strategy in South Africa, while also remaining invested in the country through the establishment of a shared services centre and head office located in Johannesburg.”
Graham Kerr, South32’s Chief Executive Officer, comments: “Today is a significant occasion; one that we are pleased to be celebrating in what are otherwise challenging times for the resources sector. South32 will start life with a strong balance sheet, along with high quality, well maintained, cash generative assets and highly talented people. We will work hard to maintain the trust of our owners and partners as we seek to unlock the potential of our assets and grow value for our shareholders and the communities in which we operate.”
“We believe that our regional model will enable us to improve our productivity and performance in a sustainable way. We will aim to combine strong operational performance with financial discipline as we seek to increase shareholder value, ” concludes Mr. Kerr.
The company’s demerger will be implemented via an in-specie distribution of South32 Shares by BHP Billiton Limited and BHP Billiton Plc to Eligible Shareholders.
