Against the backdrop of increasing requirements for sustainable and inclusive business practices in South Africa's mining and metals sector, Nedbank Corporate Finance (NCF) recently provided strategic advice to Exxaro Resources Limited (Exxaro) on the disposal of its entire shareholding in Exxaro FerroAlloys to a consortium led by EverSeed Metal Powders (EverSeed).

The deal, which closed on 31 October 2025 with a total purchase consideration of R250 million, marks a significant shift towards broader economic participation, with ownership of Exxaro FerroAlloys now made up of 60% EverSeed, 30% management and 10% employees through an employee share ownership plan (ESOP).

NCF acted as joint financial adviser to Exxaro alongside Moshe Capital on the disposal. After the acquiring consortium was finalised by Exxaro, Nedbank Business and Commercial Banking (BCB) provided senior debt to the consortium.

'Our role was to ensure that the structure met Exxaro's strategic and commercial requirements while creating space for new black-owned operators to participate meaningfully and sustainably', says Jean-Pierre Smith, Principal of Mining at Nedbank Corporate Finance.

'At its core, this deal is about responsible and sustainable empowerment,' adds Sambulo Zungu, Head of Nedbank Commercial Banking Corporate Finance. 'The inclusion of management and employees through the ESOP ensures that value creation extends to those who contribute daily to the success of the business.'

Building inclusive ownership structures

At the heart of the Exxaro FerroAlloys deal lies a vision for more inclusive and participatory ownership. By introducing a 100% black-owned investor and operator, the transaction not only deepens transformation within South Africa's industrial and mining supply chain but also sets a new precedent for responsible empowerment.

The inclusion of FerroAlloys management and employees through an ESOP ensures that benefits extend beyond equity transfer. It embeds shared accountability and long-term value creation, empowering those closest to the business to share in its success.

'Employee ownership has always been one of the most powerful drivers of transformation,' says Zungu. 'It's a model that aligns the ambitions of workers, management, and investors, creating stronger, more resilient businesses.'

Transformation with purpose

For Exxaro, one of South Africa's leading diversified mining and energy companies, the transaction aligns with its strategy to unlock value through responsible divestment, while fostering local participation and inclusive growth in its supply chain.

For Nedbank, it reaffirms the bank's role as a trusted financial partner capable of bridging commercial and developmental objectives, helping clients achieve meaningful transformation without compromising on financial integrity.

'This transaction is an example of what responsible and sustainable transformation looks like when it's guided by technical excellence and purpose,' concludes Smith. 'It's a reminder that banking can be both commercially rigorous and socially impactful.'

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