KHD Humboldt plans to split into two companies
KHD Humboldt Wedag International Ltd (KHD) plans to split into two companies – a mineral royalty firm focused on an iron ore mine in eastern Canada, and another that will hold most of the cement and mineral processing equipment and services supplier’s other assets.
KHD said the move was related to significant changes at its Wabush Iron Ore Mine since Cliffs Natural Resources Inc. (CLF), which has been moving aggressively to expand and diversify, announced plans to acquire the 73% stake in the mine that it doesn’t already own.
The remaining operations will be put into KHD’s German subsidiary, whose shares will be listed on the Frankfurt Stock Exchange, likely in March. The business will focus on enhancing the company’s cement business in the rapidly growing Indian market and add more resources in fast-growing countries such as Russia. A subsequent offering of KHD shares is planned in Europe.
The mining-royalty arm, to be called Terra Nova Royalty Corp., will be listed on the New York Stock Exchange and continue to receive royalties from the Wabush mine under a master lease that expires in 2055. Management plans to institute a dividend policy for Terra Nova shareholders.
Published under Cement News
