The Disposal By Avmin Of Its Call Option Rights On
("Kumba") shares to Stimela
ANGLOVAAL MINING LIMITED STIMELA MINING LIMITED
(Incorporated in the Republic of South (Registered in the British
Africa) Virgin Islands)
(Registration number 1993/004580/061) (Registration number 462007)
(Share code: AIN ISIN: ZAE 000017141) ("Stimela")
("Avmin")
The disposal by Avmin of its call option rights on Kumba Resources Limited
("Kumba") shares to Stimela
1. Background
On 1 November 2001, Avmin announced the disposal of its entire shareholding
in Iscor Limited ("Iscor") to Stimela and the creation of a joint venture
between Avmin and Stimela ("the share sale transaction"). Stimela agreed to
pay Avmin an amount of R24.00 per Iscor share for its entire shareholding of
31 093 300 shares. This represented a total consideration of R746 239 200
for Avmin. The first instalment was paid on 5 November 2001 and the
remainder is due on 6 May 2002.
As part of the consideration for the share sale transaction, Avmin was
granted a call option ("the Option") by Stimela to acquire between 10 per
cent and 25 per cent of all the Kumba shares beneficially held by Stimela at
the time of exercising the Option. In terms of the call option, the cost of
the Kumba shares to Avmin was set at R20.25 per Kumba share, plus related
transaction costs and interest. The Option was exercisable at anytime after
the listing of Kumba until 5 November 2002.
2. The transaction
Avmin and Stimela have concluded an agreement in terms of which Avmin will
sell its rights to the Option to Stimela for a total cash consideration of
R75 million ("the Option sale transaction"). Avmin will apply the proceeds
from the Option sale transaction towards reducing current gearing levels.
The joint venture, formed between Avmin and Stimela to pursue iron ore
opportunities, remains intact. Avmin's deputy chairman and CEO, Mr Rick
Menell, has been invited to join the board of directors of Stimela.
3. Financial effects for Avmin
The effects of the Option sale transaction on net profit per share and net
assets per share is not considered to be material.
4. Kumba pre-listing statement
Copies of Kumba's pre-listing statement, issued on 29 October 2001, will be
available to Avmin shareholders at Avmin's head office, 56 Main Street,
Johannesburg, 2001.
Johannesburg
January 2002
Sponsor to Avmin
Deutsche Securities (SA) (Pty) Limited
(Registration number 1995/011798/0721)
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