| Wed 10 Dec 2003, 16:15 | | News Release |
|
Anglo American plc - News Release
Anglo American plc
(Incorporated in the United Kingdom)
Registration number: 3564138
Share code: AGL
ISIN: GB0004901517
("Anglo American")
News Release
Anglo American announces Euro 94m merger of Bauernfeind"s Corrugated Paper and
Packaging business
Anglo American plc ("Anglo American") announces it has entered into an agreement
for the merger of Bauernfeind"s Corrugated Paper and Packaging business
("Bauernfeind") with Anglo American"s corrugated packaging business, Mondi
Packaging. The Bauernfeind Trust will receive approximately 5.3 million Anglo
American shares in exchange for Bauernfeind, valuing its equity contribution at
Euro 94 million. Net debt in Bauernfeind on closing is estimated to be at around
Euro 250 million, giving an implied enterprise value of Euro 344 million. Anglo
American will own 100% of the enlarged Mondi Packaging. This transaction is
subject to the relevant regulatory approvals.
Bauernfeind comprises a combination of corrugated paper and converting assets in
Germany, Belgium, Austria, Poland, Italy, Switzerland and China. A total of five
paper mills produce around 580,000 tonnes per annum of mainly waste based
corrugated case materials ("CCM") on seven paper machines. The converting
business consists of 10 plants with a corrugating capacity of 1,200 mm2
currently producing around 700 mm2 per annum.
Mondi Packaging is an integrated producer of corrugated paper, corrugated board
and corrugated boxes and currently produces around 735,000 tonnes per annum of
corrugated paper and 1,400 mm2 of converted corrugated packaging. The
transaction will result in the combined group becoming the 4th largest European
corrugated producer.
David Hathorn, CEO of the Mondi group, said, "This transaction builds on our
existing position in corrugated packaging and is a complementary fit with Mondi
Packaging"s existing business, providing a broader coverage of key European
markets. The transaction is in line with Mondi Packaging"s stated strategy of
acquisition led growth in order to establish critical mass in corrugated
packaging."
Background Note for Editors
Mondi Europe forms part of Anglo Paper and Packaging, a division of Anglo
American plc. Anglo Paper and Packaging contributed 21% to Anglo American"s
headline earnings for the six-month period to 30 June 2003, making it the second
largest contributor to the Anglo group. Headline earnings rose by 16% from $153
million to $178 million. Anglo Paper and Packaging"s operating profit was $357
million, 23% higher than for the first six months of 2002, with Mondi South
Africa contributing $97 million and Mondi Europe $260 million.
Anglo American plc is one of the world"s largest mining and natural resource
groups. With its subsidiaries, joint ventures and associates, it is a global
leader in gold, platinum group metals and diamonds, with significant interests
in coal, base and ferrous metals, industrial minerals and paper and packaging.
The group is geographically diverse, with operations and developments in Africa,
Europe, South and North America and Australia.
(www.angloamerican.co.uk).
For further information:
Anglo American - London
Investor Relations Media Relations
Nick von Schirnding Kate Aindow
Tel: +44 207 698 8540 Tel: +44 207 698 8619
Anglo American - Johannesburg
Investor Relations Media Relations
Anne Dunn Marion Dixon
Tel: +27 11 638 4730 Tel: +27 11 638 3001
Johannesburg
10 November 2003
Sponsor
Cazenove South Africa (Pty) Ltd
Date: 10/12/2003 03:57:05 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
