Summary
Freeport-McMoRan Inc. (FCX) has announced the completion of the indirect sale of its 70 percent interest in TF Holdings Limited (TFHL) to China Molybdenum Co., Ltd. for $2.65 billion in cash. This transaction also includes potential contingent consideration of up to $120 million, dependent on copper and cobalt prices in 2018 and 2019. The sale of TFHL, which indirectly holds an 80 percent stake in the Tenke Fungurume Mining S.A. in the Democratic Republic of Congo, is a significant move to deleverage FCX's balance sheet.
Key Highlights
- 1Completion of the sale of FCX's 70% interest in TF Holdings Limited (TFHL) for $2.65 billion in cash.
- 2Transaction includes contingent consideration of up to $120 million based on future copper and cobalt prices.
- 3Proceeds of approximately $2.65 billion will be used to repay indebtedness, with half allocated to unsecured bank term loan.
- 4TFHL indirectly owns an 80% interest in Tenke Fungurume Mining S.A. located in the Democratic Republic of Congo.
- 5FCX's effective interest in Tenke Fungurume was previously 56% (70% of 80%).
- 6TFHL's results of operations were previously reported as discontinued operations.
- 7FCX's 2015 audited financial statements were revised to reflect TFHL's historical operating results as discontinued operations.