| Mon 14 Jan 2002, 0:00 | | Anglogold's Offer Now Potentially Superior For Maj |
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Anglogold Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1944/017354/06)
ISIN Number: ZAE000014601
JSE Share Code: ANG
NEWS RELEASE
ANGLOGOLD'S OFFER NOW POTENTIALLY SUPERIOR FOR MAJORITY OF RETAIL INVESTORS
At the close of the New York market on Friday, 11 January, the AngloGold and
Newmont offers were just 1 cent apart, with the implied value of the
AngloGold offer currently being A$1.94 per Normandy share compared to an
implied value of Newmont's offer of A$1.95.
AngloGold Chairman and CEO Bobby Godsell said today: "The market value of
AngloGold's and Newmont's offers is now virtually identical. It is my view
that our offer is now potentially superior for retail investors,
particularly if they take up the AngloGold Top-Up Facility."
The Top-Up Facility enables a Normandy shareholder to acquire up to A$7,500
of additional AngloGold shares at a 7.5% discount to AngloGold's 30-day
average share price*. In fact, given the recent rise in the AngloGold share
price the allotment price is currently at around a 15% discount to
AngloGold's prevailing market price. The highly attractive nature of the Top-
Up Facility is probably not well understood by retail investors.
In addition to the benefits of the Top-Up facility, shareholders who accept
our offer and retain their AngloGold shares will be entitled to AngloGold's
2001 final dividend, which will be declared at the end of January. Shares
acquired through the Top-Up Facility will also qualify for the dividend.
Godsell added: " To date in excess of 2,200 shareholders have accepted
AngloGold's offer and I look forward to welcoming many more Normandy
shareholders as new shareholders in AngloGold."
Based on the 7.5% discount, the Top-Up Facility is worth potentially an
additional 20 cents per share for an average retail investor with a holding
of 3,000 Normandy shares.
At present the inherent discount in the Top-Up Facility is currently
substantially higher due to the strong increase in AngloGold's share price.
This is because the discounted allotment price under the facility is
calculated against the 30-day weighted average price of AngloGold shares.
For example, the allotment price of AngloGold shares issued under the Top-Up
Facility on Friday, 11 January was A$64.47, compared with a closing price on
the NYSE that day equivalent to A$76.13. This represents a discount to the
current market price of over 15%. Based on the current market price, the
value inherent in this discount to a Normandy shareholder taking up the full
A$7,500 subscription is over A$1,350. For a Normandy shareholder holding
3,000 shares, this translates to an additional A$0.45 per share.
Clearly, the AngloGold offer combined with the value of the Top-Up Facility
is superior for such a shareholder in Normandy.
It should also be noted that the Top-Up Facility is available to
shareholders who purchase Normandy shares during the offer period and accept
AngloGold's offer.
AngloGold's offer is unconditional and payment will be made promptly. In
fact, AngloGold has shortened the payment period from five business days to
three business days of receipt of acceptance. In contrast, Newmont's offer
remains subject to numerous conditions and payment cannot be made until
after Newmont's shareholders meeting on 13 February at the earliest.
AngloGold has also modified the handling fees payable to brokers. For
acceptances received from today until the close of its offer AngloGold will
pay a handing fee of 0.75% on the first 55,000 Normandy shares and 0.5% on
any additional shares**.
AngloGold's offer is scheduled to close at 19:00 Sydney time on Friday, 18
January 2002.
*The inherent discount in the Top-Up Facility will fluctuate with market
prices and shareholders should consult with their financial adviser or
stockbroker in determining whether or not to take up the Top-Up Facility.
Shareholders should note that brokerage fees and tax liabilities may arise
on the disposal of shares.
**The handling fee is payable to any participating organisation of the ASX
whose stamp appears on the acceptance form or who, in respect of a CHESS
holding, provides evidence satisfactory to AngloGold that it is the
Controlling Participant who has initiated the acceptance. Brokers are
precluded from receipt of any handling fee in respect of shares in which
they or their associates have relevant interests (within the meaning of
those terms under the Australian Corporations Act).
www.anglogold.com
Queries:
In South Africa
Steve Lenahan
+2711 637 6248 (tel)
+2711 637 6107 (fax)
+27 83 308 2200 (mobile)
slenahan@anglogold.com
Shelagh Blackman
+2711 637 6379 (tel)
+2711 637 6399 (fax)
+27 83 308 2471 (mobile)
sblackman@anglogold.com
In Australia
Andrea Maxey
+61 8 9425 4604 (tel)
+61 8 9625 4650 fax)
+61 438 001 393 (mobile)
amaxey@anglogold.com.au
Hamish Douglass
Deutsche Bank
+61 2 9258 2039 (tel)
+61 2 9258 2440 (fax)
+61 419 560 349 (mobile)
hamish.douglass@db.com
In Europe
Tomasz Nadrowski
+41 22 718 3312 (tel)
+41 22 718 3335 (fax)
+41 79 345 9774 (mobile)
tnadrowski@anglogold.com
In the USA
Charles Carter
800 417 9255 toll free
+1 212 750 7999 (tel)
+1 212 750 5626 (fax)
ccarter@anglogold.com
Ends
