[Ferro-Alloys.com] Voluntary Announcement for the Disposal of Exxaro Ferroalloys Proprietary Limited

 1. Introduction

Shareholders are hereby advised that Exxaro has successfully completed the disposal of its entire issued share capital in Exxaro FerroAlloys Proprietary Limited (“FerroAlloys”) to a consortium led by EverSeed Energy Proprietary Limited, through its wholly owned subsidiary, EverSeed Metal Powders Proprietary Limited (“Everseed”) for a total consideration of R250 million (“Transaction”).

The Transaction has been completed and became effective on 31 October 2025 following the fulfilment of all conditions precedent.

2. Transaction details

Exxaro has disposed of its entire issued share capital in FerroAlloys, a domestic producer of ferrosilicon, serving industrial customers in South Africa.

Following the Transaction, the ownership structure of FerroAlloys is as follows:

EverSeed: 60%

FerroAlloys Management: 30%

FerroAlloys Employee Share Ownership Plan (ESOP): 10%

The total consideration is R250 million, the majority of which is payable in cash on closing. The Transaction is funded with commercial debt provided by Nedbank Limited, plus equity from the acquiring shareholders and the balance will be settled through a combination of vendor finance provided by Exxaro and deferred payments.

EverSeed is a 100% black-owned investor and operator in the resources and energy sectors, with a track record of developing projects across Southern Africa, Europe, and North America.

The FerroAlloys management team will continue to lead the business, ensuring operational continuity and the preservation of institutional knowledge.

This Transaction reflects Exxaro’s commitment to enabling empowered, locally owned businesses that contribute to industrial resilience, export competitiveness, and inclusive economic participation.

Ben Magara, CEO of Exxaro, commented:

“This divestiture marks another strategic milestone in Exxaro’s journey as we accelerate the delivery of our strategy, focusing on our strong coal base, growing energy solutions business and acquisitive growth ambitions in energy transition metals. We are pleased that our FerroAlloys management will continue to drive the great performance of the business, ensuring stability and stakeholder alignment. We are confident that EverSeed, alongside the management team and employees, will continue to build a resilient and competitive business that contributes meaningfully to South Africa’s industrial base and export potential. We extend our appreciation to the management and employees of FerroAlloys for their contributions over the years and wish the team continued success.”

Kerwin Rana, CEO of EverSeed, added:

“The acquisition of FerroAlloys is squarely aligned with EverSeed’s long-term strategy to build and operate essential industrial businesses. We are particularly pleased that the structure aligns interests across management and employees. With management and employees invested alongside us, we will deliver continuity for customers today, and safe, disciplined and sustainable growth into the future.”

Thindo Nemavhola, the General Manager of FerroAlloys, added:

“As shareholders, management and employees, we are pleased to be taking this great and unique business into the next phase of its sustainable growth and we are delighted to have on board, our majority shareholder, EverSeed, who share our aspiration for a leading, safe and efficient industrial business as we continue to deliver to our longstanding customers. With an active export license in place, we are well positioned to expand our business into international markets, marking the next frontier of our growth journey.”

3. Categorisation

This Transaction is not notifiable from a categorisation perspective nor is it a related party Transaction in terms of the JSE Listings Requirements and accordingly, this information is disclosed on a voluntary basis.

• [Editor:tianyawei]