| Tue 12 Mar 2002, 0:00 | | Anglo American plc - Acquires Strategic Holdings i |
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JSE Code : AGL
Issuer code : ANAAL
Isin Code : GB0004901517
ANGLO AMERICAN PLC ACQUIRES STRATEGIC HOLDINGS IN
KUMBA AND AVMIN
Anglo American plc (Anglo American) is pleased to announce the acquisition,
subject to appropriate regulatory approvals, of significant shareholdings in
Kumba Resources Limited (Kumba) and Anglovaal Mining Limited (Avmin) which
will:
- further its strategic objective of securing a meaningful interest in the
iron ore sector;
- accelerate the development of a world-class South African based iron ore
champion; and
- help to develop fully South Africa's iron ore potential.
Anglo American has acquired:
- 9.6% of Kumba in open market transactions, together with the right to
acquire a further 10.5% of Kumba making 20.1% in total for a total cash
consideration of R2.4 billion (US$220 million), equivalent to R40.61 per
Kumba share; and
- 34.9% of Avmin for a total cash consideration of R1.6 billion (US$145
million), equivalent to R41.08 per Avmin share.
As a global mining and natural resources company, Anglo American has sought
for some time to strengthen its existing mining interests with a significant
investment in the iron ore sector. Anglo American has strong confidence in
the South African mining industry and therefore has decided to reinvest a
significant portion of funds realised from the disposal of its non-core
South African interests in these two South African mining companies. Kumba
and Avmin, through Assmang Limited, have world-class iron ore portfolios,
have attractive growth profiles, present good value and will together
provide Anglo American with an effective US Dollar/Rand hedge.
Anglo American will be an anchor shareholder for both Kumba and Avmin and
will support, and where possible facilitate, management's growth strategies.
In particular, Anglo American intends working with all stakeholders,
including Kumba, Avmin, the South African Government and appropriate black
economic empowerment groupings to:-
realise the full growth potential of the Kalahari iron ore resource;
help unlock the significant synergies of the Kalahari iron ore mines,
together with Orex (owner of the Sishen Saldanha railway line) and the
Saldanha Iron Ore Port facility; and
facilitate meaningful black economic empowerment. Anglo American is
currently in discussion with empowerment parties.
Anglo American is fully committed to use its financial and technical
resources to grow the Kalahari iron ore mines and supporting infrastructure
for the benefit of all stakeholders.
Anglo American, Kumba and Avmin have a number of complementary business
interests in heavy minerals, coal, gold and base metals, which may also
offer further scope to unlock value for all stakeholders.
Tony Trahar, Chief Executive of Anglo American plc said, "These transactions
provide Anglo American with a meaningful interest in both companies and a
strategic entry point into the iron ore sector. We enjoy a constructive
working relationship with the management of Kumba and Avmin, together with
the South African Government, and look forward to continuing to work
together to unlock the full potential of these assets and resources. This
development will be of great benefit to the economy of South Africa as a
whole, particularly at a time when the country is seeking to stimulate
growth and development and will provide employment opportunities and boost
foreign exchange earnings through exports. It will also provide
opportunities for advancing meaningful and sustainable black economic
empowerment."
For further information:
London:
Investor Relations
Nick von Schirnding +44 20 7698 8540
Media Relations
Kate Aindow +44 20 7698 8619
Johannesburg:
Investor Relations
Anne Dunn +27 11 638 4730
+27 82 448 2684
Media Relations
Marion Dixon +27 11 638 3001
+27 82 775 5520
Date: 12/03/2002 02:00:00 PM Produced by the JSE SENS Department
