M&G Investments slashes Exxaro stake by 13 million shares to $186 million

M&G Investment Managers, a prominent global investment management firm owned by M&G plc, has sharply reduced its stake in Exxaro Resources, cutting its holding by about 13 million shares to 17.2 million shares worth approximately $186.3 million, as the South African diversified miner reshapes its portfolio around coal, renewable energy and future-facing metals.

According to a disclosure filed by the Gauteng-based diversified resource and coal producer led by Zimbabwean mining tycoon Bennetor (Ben) Magara on September 23, 2026, M&G’s clients now hold 5.04% of the company’s issued ordinary shares, down from 8.87% at the start of the year.

PIC takes more shares in Exxaro amid M&G disposal

At the beginning of 2026, M&G held 30.32 million Exxaro shares, valued at approximately R5.5 billion ($333.1 million) based on the share price at the time. Its current holding of about 17.2 million shares is valued at about R3.06 billion ($186.3 million), representing a reduction of roughly 13.1 million shares.

The latest disclosure brings M&G’s interest below the 5% threshold at which South African substantial-shareholder disclosures become relevant once further changes occur, although the reported holding remains just above that level at 5.04%.

Africa’s largest asset manager, the Public Investment Corporation (PIC), has, in other words, significantly bolstered its exposure in the coal miner, acquiring more than 17 million additional shares, expanding its energy portfolio.  The investment has lifted PIC’s clients’ combined interest in the Gauteng-based diversified resource and coal producer to 15.155%, making the state-owned asset manager an increasingly significant shareholder in the South African coal producer. 

PIC’s Exxaro stake rises to $561.48 million

At the beginning of 2026, PIC’s clients held 34,820,829 shares in the coal miner, representing a 10.18% interest in the company. At a share price of R181.14, the holding was worth approximately R6.31 billion ($381.88 million).

Exxaro’s share price has since declined by approximately 2.13%, reducing the value of that original holding to about R6.17 billion ($377.31 million).

Against this backdrop, PIC has increased its position by 17,009,271 shares, taking its holding to 51,830,100 shares, equivalent to a 15.155% interest in Exxaro. At the current share price, the stake is worth approximately R9.19 billion ($561.48 million).

Exxaro streamlines Australian coal portfolio

The reduction in M&G’s holding comes as Exxaro, led by mining tycoon Ben Magara, advances a strategy to simplify its portfolio and concentrate capital on its established South African coal operations, renewable energy and future-facing metals, particularly manganese. On September 4, Exxaro exercised its pre-emptive right to acquire Anglo American’s 50% interest in the Moranbah South project in Australia before agreeing to sell the entire project to Stanmore Resources for $105 million.

Exxaro currently owns 50% of Moranbah South through its wholly owned subsidiary, Exxaro Australia. Once it completes the acquisition of Anglo American’s interest, it will temporarily own 100% of the project before transferring the entire asset to Stanmore.

Exxaro faces mixed commodity conditions

For the six months ended June 30, 2026, Exxaro reported revenue of R22.1 billion, up 7% year-on-year, while cash generated from operations increased 15% to R6.1 billion. Coal production rose 11% to 21.5 million tonnes, while coal export sales increased 15% to 3.9 million tonnes.

However, headline earnings declined 20% to R13.77 per share, while the interim dividend fell 17% to R7 per share, reflecting the mixed operating environment facing the group.

The company continues to position itself beyond coal through renewable energy investments, while maintaining its position as one of South Africa’s major coal producers.

The latest move by M&G follows a period of significant changes in Exxaro’s shareholder base. At December 31, 2025, M&G Investment Managers was the company’s fourth-largest disclosed investment manager, holding 30.32 million shares, equivalent to 8.87% of Exxaro.