| Tue 24 Apr 2012, 8:00 | | AGL - Anglo American plc - Announces sale of Scaw South Africa to complete its |
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AGL
ANAAL
AGL - Anglo American plc - Announces sale of Scaw South Africa to complete its
Scaw Metals Group divestment
Anglo American plc ("the Company")
Incorporated in the United Kingdom
(Registration number: 3564138)
Short name: Anglo
Share code: AGL
ISIN number: GB00B1XZS820
Anglo American announces sale of Scaw South Africa to complete its Scaw Metals
Group divestment
Anglo American plc ("Anglo American") announces the final stage of the $1.4
billion Scaw Metals Group ("Scaw") divestment with the sale of Scaw South
Africa (Pty) Ltd. ("Scaw South Africa"), a leading South Africa based integrated
steel maker, to an investment consortium led by the Industrial Development
Corporation of South Africa ("IDC") and Anglo American`s partners in Scaw South
Africa (Pty) Ltd, being Izingwe Holdings (Pty) Limited, Shanduka Resources (Pty)
Limited and the Southern Palace Group of Companies (Pty) Limited (collectively
"the Consortium"), for a total consideration of R3.4 billion ($440 million) on a
debt and cash free basis.
This transaction follows the sale of Scaw`s international businesses, Moly-Cop
and AltaSteel, to Onesteel in December 2010 for a total consideration of $932
million on a debt and cash free basis. In aggregate, the total consideration
achieved from the sale of all Scaw`s businesses has amounted to $1.4 billion on
a debt and cash free basis.
Cynthia Carroll, Chief Executive of Anglo American, said: "The sale of Scaw
brings the total announced proceeds from our divestments of non-core assets to
$3.7 billion since 2010, maximising value from these businesses for our
shareholders. I am particularly pleased that the manner in which we conducted
this divestment reinforces our ongoing commitment to South Africa. This
acquisition will contribute positively to the South African government`s
industrial development objectives by enabling the IDC to play a meaningful role
in the strategically important steel industry. I wish to thank the management
team and employees at Scaw for their support during this process and wish them
all the best under the ownership of the Consortium."
Geoff Qhena, Chief Executive Officer of the IDC, said: "The IDC endeavours to
promote the establishment of domestic-based manufacturing industries, supporting
the infrastructure expansion programmes of both Eskom and Transnet. In this
regard, Scaw South Africa is well positioned to take advantage of long term
growth trends in the mining industry, as well as in the railway and power
generation sectors, and is aligned to our primary objective of creating
balanced, sustainable economic growth in South Africa and across the African
continent."
Sipho Pityana, Chairperson of Izingwe Holdings (Pty) Ltd. and representing Anglo
American`s partners in Scaw South Africa, said: "This transaction provides an
excellent platform for the strategic positioning of a BEE player in the
manufacturing sector, in line with the new and emboldened approach of
government, and affords us an opportunity to gradually increase black
participation in the asset. We commend Anglo American for demonstrating a
readiness to embrace the above transformation vision by allowing us, as their
partners in Scaw, to buy their interest in the business with suitable partners
and we are grateful to the IDC and the government for their strong support."
The transaction is subject to customary closing conditions such as regulatory
approvals in South Africa including but not limited to competition clearance,
and is expected to be completed during the course of 2012. Further announcements
will be made in due course, as appropriate.
Notes to editors:
Scaw Metals Group
Scaw is a leading South Africa based integrated steel maker producing highly
specialized and critical consumable components for the mining, rail, power,
offshore oil and gas, construction, commercial and other industrial sectors. The
business operates through four product focused business units with facilities in
South Africa. Grinding Media produces high chrome and forged grinding media.
Wire Rod Products produces steel wire rope, chain, wire and strand and other
related products for mining, industrial, construction and offshore oil drilling
applications. Cast Products designs and produces a variety of cast steel
products for the mining, metal processing, power generation and railway
industries. Rolled Products is a manufacturer of low and high carbon long steel
products.
In addition to Scaw South Africa, the Business includes a 50% interest in CWI, a
joint venture with ArcelorMittal South Africa; a 31% interest in GSIL, a joint
venture with Lucchini SpA, and 100% equity interest in each of Haggie North
America Inc, Haggie Reid (Pty) Ltd., African Wire Ropes (Pty) Ltd., Haggie Rand
Zimbabwe (Pty) Ltd., Scaw Metals (Pty) Ltd. (previously known as PWB Anchor
(Pty) Ltd.) and Afrope Zambia Ltd.
Anglo American
Anglo American is one of the world`s largest mining companies, is headquartered
in the UK and listed on the London and Johannesburg stock exchanges. Anglo
American`s portfolio of mining businesses spans bulk commodities - iron ore and
manganese, metallurgical coal and thermal coal; base metals - copper and nickel;
and precious metals and minerals - in which it is a global leader in both
platinum and diamonds. Anglo American is committed to the highest standards of
safety and responsibility across all its businesses and geographies and to
making a sustainable difference in the development of the communities around its
operations. The company`s mining operations, extensive pipeline of growth
projects and exploration activities span southern Africa, South America,
Australia, North America, Asia and Europe.
www.angloamerican.com
Purchaser
The IDC is a national development finance institution set up to promote economic
growth and industrial development in South Africa and across the rest of the
African continent. The IDC is wholly owned by the South African government under
the supervision of the Economic Development Department. Anglo American`s
partners in Scaw South Africa (Pty) Ltd. - Izingwe Holdings, the Southern Palace
Group of Companies and Shanduka Resources - are leading black owned and managed
investment companies with investments across a broad range of sectors. The
partners have been invested in Scaw since 2007.
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Leng Lau
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8540
Emily Blyth Caroline Crampton
Tel: +44 (0)20 7968 8481 Tel: +44 (0)20 7968 2192
South Africa Leisha Wemyss
Pranill Ramchander Tel: +44 (0)20 7968 8607
Tel: +27 (0)11 638 2592
24 April 2012
Sponsor: UBS South Africa (Pty) Ltd
Date: 24/04/2012 08:00:05 Produced by the JSE SENS Department.
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