| Mon 25 Aug 2003, 14:51 | | BEE consortium acquires Mondi timber business |
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Anglo American Plc - BEE consortium acquires Mondi timber business
ANGLO AMERICAN PLC
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News from Mondi
25 August 2003
BEE consortium acquires Mondi timber business
In a R34,5 million transaction, Mondi South Africa has announced the sale of its
Ramanas sawmill, Lusaba kiln facility and 4900ha of adjacent FSC accredited
eucalyptus sawlog plantations, all near Hazyview in Mpumalanga, to Vuka Alliance
Consortium (Vuka). Vuka is a black economic empowerment (BEE) entity,
consisting of Vuka Alliance (Pty) Limited, Hans Merensky Holdings (Pty) Limited
and Treated Timber Products (Pty) Ltd. The agreement requires Vuka to retain
the services of the operation"s approximately 145 employees for a period of 12
months and is subject to the approval of the competition authorities.
Vuka is headed by Dr Mathews Phosa, who commented on the transaction: "Ours is
a very strong consortium, consisting of the world class expertise of Hans
Merensky, Vuka"s focus on local economic empowerment and the `value adding"
knowledge of Treated Timber Product"s, a combination which also has considerable
knowledge and understanding of the Mpumalanga region. Vuka will be looking for
similar opportunities, to become a significant timber industry player".
Andrew Thompson, CEO of Mondi South Africa noted, "We are delighted to have been
able to play a key role in another sustainable BEE deal, which also realizes
fair value for our shareholders. We believe that this transaction provides Vuka
with an attractive opportunity to participate in a meaningful way in the timber
industry."
Ends
Contacts:
Mondi SA
Marion Dixon
011 638 3001
Vuka Alliance
Pieter de Bruyn
Mobile 082 389 2019
Note to editors
Ramanas is situated just below the "God"s Window" escarpment to the east of
Graskop. The forests of Ramanas cover some 4 900 ha and have a yield in excess
of 100 000 m3 of Eucalyptus fibre, poles and saw timber per annum. Although the
age class distribution of Ramanas is somewhat distorted, Ramanas is one of the
few forestry assets in southern Africa that have been managed on a long-term saw
timber regime.
Treated Timber Products, the largest operation of its kind in southern Africa,
provides a viable market for treated poles and products.
This transaction is coinciding with the creation of the Mathews Phosa
Foundation, which will have local economic development and facilitating study
opportunities for the previously disadvantaged as primary objectives.
Mondi BEE initiatives
In 2002 Mondi South Africa has spent R317 million on procurement and SME
development representing an 83% rise on last year"s spend. Key contributors
within the division are Mondi Paper (R81 million) and Mondi Forests (R115
million). Special projects include the Khulanathi growers" scheme and BlackGold
Forest Products (Pty) Ltd. The growers" scheme, which continues to make a
meaningful contribution to Mondi"s BEE performance, contributed over R47
million. BlackGold Forest Products converts waste timber into Forestry
Stewardship Council (FSC) accredited charcoal for local markets. The first set
of kilns commenced production in December 2002.
SiyaQhubeka Forests, a consortium comprising Mondi Limited (65%) and Imbokodvo
Lemabalabala Holdings (10%), and the SA government through SAFCOL, the National
Empowerment Fund and Employees (25%), received a package of former State forests
in a R100 million transaction in December 2001. Mondi has agreed to facilitate
the sale of 14% of its interest in SiyaQhubeka to rural black timber farmers,
neighbouring communities (including traditional leaders) and the empowerment
shareholders, thereby reducing its shareholding over time to 51%.
Date: 25/08/2003 01:15:38 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
