JSE-bound Thungela Resources CEO is upbeat about the spin-off's prospects

Multi-national mining behemoth Anglo American's eagerly anticipated spin-off of its South African coal assets is around the corner. July Ndlovu, CEO of Thungela Resources (ex-Anglo coal) was on the BizNews Power Hour outlining the investment case for the JSE-bound commodity counter. Anglo American has been under pressure from shareholders to disinvest from assets no longer meeting its environmental, social and governance (ESG) standards. The spin-off provides investors with a single commodity counter that is cash generative. BizNews founder Alec Hogg and Sasfin Securities David Shapiro share their pearls of wisdom on the corporate action, having seen many similar types of spin-off scenarios over their years whilst covering the capital markets. The price is likely to be under pressure from the onset, given the predictable sell-off from international investors. This could provide an attractive entry point in the weeks after listing. Learn more about your ad choices. Visit megaphone.fm/adchoices