S32 – Spins-Off South African Energy Coal
South32 announced plans to run its South African Energy Coal (SAEC) business separately from the rest of the company from April 2018.
We see this announcement as a net positive for shareholders.
Risks to South 32’s earnings relate to their exposure to commodities which have performed strongly over the near term.
S32 trades on a forward yield of 4.1% and we hold the stock in our ASX 50 model.
South 32
