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ELD
ELD
ELD - Eland Platinum Holdings Limited - Eland confirms Xstrata acquisition
offer at 18% Premium
Eland Platinum Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/029957/06)
(ISIN number: ZAE000078655)
Share code: ELD
("Eland Platinum" or "the Company")
ELAND CONFIRMS XSTRATA ACQUISITION OFFER AT 18% PREMIUM
The Board of Directors of Eland Platinum Holdings Limited ("Eland") today
confirmed its receipt of a cash offer by Xstrata South Africa (Proprietary)
Limited ("Xstrata SA"), an indirectly wholly owned subsidiary of Xstrata
plc ("Xstrata"), to acquire the entire issued ordinary share capital of
Eland for R105 per share.
The offer is being made by way of a scheme of arrangement ("Scheme") and
represents an 18% premium on the R89 closing share price of Eland on 11
April 2007, the last trading day preceding the release of the first
cautionary announcement and a 53% premium on the 30 day volume weighted
average price (VWAP) to 11 April 2007 of R68.34.
The Eland Board has established a sub-committee headed by an independent
non-executive director, Lizwi Mtumtum, to manage and co-ordinate the offer
process from an Eland perspective, and to assist the Board in making a
recommendation to Eland shareholders. Other members of the sub-committee
include Loucas Pouroulis, David Salter, Johan van Vuuren and Jonathan
Clark. The sub-committee has appointed Merrill Lynch South Africa (Pty)
Ltd. as the independent external advisor to advise on whether the terms of
the offer are fair and reasonable to Eland shareholders.
Shareholders, including Eland directors and management, holding 51% of the
issued ordinary shares of Eland, have provided Xstrata SA with conditional
irrevocable undertakings to vote in favour of the Scheme. Should the
Scheme not become operative, Xstrata will make a substitute offer at the
same cash consideration (the "Substitute Offer"). Irrevocable undertakings
have also been received from at least 51% of shareholders to accept the
Substitute Offer if the Scheme does not proceed.
Eland Managing Director Dr David Salter said today that construction work
at the company`s Elandsfontein Platinum Mine near Brits continues on track,
with production of first concentrates scheduled for October 2007. Mining
of UG2 ore began in January 2007 - 17 months from Eland`s formation - and
to date a stockpile in excess of 400 000 tonnes of ore has been built.
"The project team has delivered on a very tight development schedule
assisted to a significant extent by the co-operation received from a number
of key parties, notably the Department of Minerals and Energy," Salter
said.
""We believe the cash offer represents the culmination of Eland
management`s continued promise to deliver exceptional value to
shareholders, and once the Scheme is approved by shareholders, a very
attractive opportunity for them to realise substantial growth in their
investment over a very short period of time""
Queries: James Duncan
Russell & Associates
27 11 880 3924 (w)
27 82 892 8052 (h)
Date: 07/08/2007 08:57:01 Produced by the JSE SENS Department.
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