The acquisition by Isizinda, a partnership between Bingelela Capital and [DATA HLM:Hulamin], is expected to be effective from 1 April 2015, subject to approval from the Competition Commission.
“Bingelela Capital, a KZN based BEE group, owns a majority 60 per cent stake in Isizinda. Hulamin holds 40 per cent and will also provide managerial, technical and administrative support to Isizinda in terms of a strategic operator agreement,” Hulamin said in a statement.
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Isizinda has entered their five year liquid metal supply agreement with [DATA BIL:BHP Billiton]. Hulamin has therefore also entered their slab offtake agreement with Isizinda. The partnership is valued at approximately over 10 billion rand, over the five year period.
Isizinda is looking to develop the Bayside casthouse in order to support the predicted growth of the downstream aluminium industry in South Africa.
“We are really excited about the transaction which was only made possible by all parties’ close co-operation. Not only will it secure our rolling slab supply from Bayside for the next five years and beyond but it will also see the creation of an aluminium hub in Richards Bay."
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“This hub has the potential to supply liquid metal and/or castings to other manufacturers in the South African aluminium industry thereby stimulating growth in downstream beneficiation,” said David Austin, acting CEO of Hulamin.
Until the Competition Commission approves the acquisition, BHP Billiton will remain working at the Bayside casthouse supplying slab to Hulamin.