Delta EMD to Halt Operations and Sell Assets

Mining Weekly reported that Delta EMD Ltd. (JSE:DTA), an electrolytic manganese dioxide (EMD) manufacturer that supplies the alkaline battery industry, will “discontinue its operations and sell its assets,” subject to shareholder approval.

The company cites the poor EMD market and its less-than-favorable financial performance as reasons for its decision.

As quoted in the market news:

In a statement released on Wednesday, Delta EMD said it planned to discontinue its operations, in 2014, and sell its assets, during 2014 and 2015 in Nelspruit, in Mpumalanga, Black Rock, in the Northern Cape, and Newcastle, in Australia

The company said it had considered a number of strategic options, including the sale of the business, a change in strategy, and discontinuation; however, an investigation of alternative strategies had not identified attractive investment opportunities.

While efforts to sell the business had not been successful, the company would consider any further interest from buyers, even if its several sites were of interest to different buyers.

Click here to read the full Mining Weekly report.