| Tue 16 Nov 2004, 12:32 | | THE HARMONY BID HAS ALREADY DESTROYED MORE THAN |
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GOLD FIELDS - THE HARMONY BID HAS ALREADY DESTROYED MORE THAN R7 BILLION IN
SHAREHOLDER VALUE FOR GOLD FIELDS AND HARMONY SHAREHOLDERS.
Gold Fields Limited
JSE share code: GFI
ISIN: ZAE000018123
MEDIA RELEASE
THE HARMONY BID HAS ALREADY DESTROYED MORE THAN R7 BILLION IN SHAREHOLDER VALUE
FOR GOLD FIELDS AND HARMONY SHAREHOLDERS.
Johannesburg, 15 November 2004: Since it was launched on 15 October 2004, the
hostile bid by Harmony for 100% of the outstanding shares of Gold Fields has
destroyed almost R7 billion in potential value for shareholders of Gold Fields
and Harmony combined.
On 15 October, the last trading day before the launch of the hostile bid, the
Gold Fields share price was R94.02. It has declined by 11% to R83.50 on Friday
12 November. Over the same period the Harmony share price has declined by 21%
from R83.50 to R65.70.
Based on the actual share prices at the start and the end of this period the
value leakage for Gold Fields shareholders amounts to US$462 million, and for
Harmony shareholders to US$712 million. Using the spot exchange rate on 12
November, this translates into a loss of R2.8 billion for Gold Fields
shareholders and R4.3 billion for Harmony shareholders, for a combined loss of
R7.1 billion.
During the same period the North American peer group outperformed by a median of
12.6%, on the back of the stronger gold price. It follows that Gold Fields has
underperformed the North American peer group by 19.1% and Harmony by 29.7%
during this period.
Ian Cockerill, Chief Executive Officer of Gold Fields said: `In a rising gold
market both Harmony and Gold Fields shareholders are suffering serious value
loss as a result of this value destructive and ill conceived proposal by
Harmony`.
ends
16 November 2004
In the United States, Gold Fields Limited (`Gold Fields`) has filed a
Solicitation/Recommendation Statement with the US Securities and Exchange
Commission (the `SEC`) on Schedule 14D-9 and holders of the Gold Fields Ordinary
Shares and American Depositary Shares are advised to read it as it contains
important information. Copies of the Schedule 14D-9 and other related documents
filed by Gold Fields are available free of charge on the SEC`s website at
http://www.sec.gov. Any documents filed by Harmony Gold Mining Company Limited,
including any registration statement on Form F-4 (including any prospectus
contained therein) and related exchange offer materials as well as its Tender
Offer Statement on Schedule TO, will also be available free of charge on the
SEC`s website.
The directors of Gold Fields accept responsibility for the information contained
in this document. To the best of their knowledge and belief (having taken all
reasonable care to ensure that such is the case) the information contained in
this document is in accordance with the facts and does not omit anything likely
to affect the import of such information.
Copies of this document are not being made available, and must not be mailed,
forwarded, transmitted or otherwise distributed or sent in or into Australia,
Canada, Japan, the Republic of Ireland or any other jurisdiction in which it is
illegal to make this document available and persons receiving this document
(including custodians, nominees and trustees) must not distribute, forward,
mail, transmit or send it in or into or from Australia, Canada, Japan, the
Republic of Ireland or any such other jurisdiction.
Date: 16/11/2004 12:10:03 PM
Produced by the JSE SENS Department
