 "JSW to delist its arm SACMH on Johannesburg Stock Exchange")
JSW Energy today said it has proposed to delist its step down subsidiary South African Coal Mining Holding (SACMH) on Johannesburg Stock Exchange.
"JSW Energy Natural Resources South Africa Proprietary Limited, a step down subsidiary of the Company in South Africa, which holds 67.27 per cent in its subsidiary SACMH has intimated its firm intention...To the proposed delisting of SACMH on the Johannesburg Stock Exchange (JSE) and an offer to all remaining shareholders," JSW Energy Ltd informed the BSE.
According to the statement, now JSW Energy Natural Resources South Africa Proprietary Limited will make an offer to all remaining shareholders for buying their stake.
The independent board of directors of SACMH proposed delisting on the company based on reasons including administratively intensive and costly to maintaining the listing of SACMH on the Johannesburg Stock Exchange (JSE).
As per the board, the mine operated by SACMH has been in care and maintenance for an extended period of time and the coal produced by the mine does not meet the requirement of the Richards Bay Coal Terminal for exports, and therefore has to be blended with coal procured from other mines.
They also said that the cost of mining coal at such a relatively small operation is more that the dollar export prices achieved by coal, consequently the operation is not viable.
Another reason was that the volume of trade over the last few years whilst JSW Energy Natural Resources South Africa Propriety Limited (JSW SA) was the majority of shareholder, has been relatively insignificant and the trading in SACMH's shares had been suspended by JSE on May 4, 2015.
The company says the delisting has to be accompanied by an offer to all shareholders.
