Ferrochrome producer Merafe Resources has resolved to restructure and simplify its group structure, which will result in the company holding a 100% interest in Merafe Ferrochrome and Mining (MFM).
The restructure is believed to be beneficial from an operational perspective and to result in an efficient flow of funds.
Merafe currently has a 100% indirect interest in MFM through its wholly-owned subsidiary, Merafe Chrome and Alloys (MCA), which does not trade or conduct any operational business.
MCA’s main function is to serve as the conduit through which dividends from the Glencore-Merafe chrome joint venture (JV) received by MFM flow to Merafe.
MFM has a 20.5% participation in the earnings before interest, taxes, depreciation and amortisation of the JV.
The restructure is expected to take place on or about January 24, whereby MCA will distribute its ordinary MFM shares to Merafe.