Jci Sells Stake In Johnson Matthey

JCI, the South African mining house, on Friday sold its 8.6 per cent stake in Johnson Matthey, the UK based precious metals and engineering group, for about £104 million($174 million). The first black controlled South African mining group said the sale would help pay for a 26.7 per cent stake in Lonrho, the UK conglomerate. Merger talks between JCI and Lonrho were broken off this month but then the South African company entered into a put and call option to acquire the stake for R2.45 billion ($537 million). The Lonrho shares are being sold by Anglo American, South Africas biggest company, and by its associates, De Beers and Southern Life Association. SBC Warburg saidon Friday it had been asked by JCI to dispose of the Johnson Matthey holding. The 18.9 million shares were bought by Warburg for 555p each and then placed with institutions, many of them existing Johnson Matthey holders, at 560p.