HIGHVELD STEEL AND VANADIUM CORPORATION LIMITED - PART DISPOSAL OF ACERINOX
INVESTMENT
Highveld Steel and Vanadium Corporation Limited
A member of the Anglo American plc Group
Registration no. 1960/001900/06
(Incorporated in the Republic of South Africa)
(`Highveld` or `the corporation`)
Share code: HVL
ISIN code: ZAE000003422
Part Disposal of Acerinox investment
Highveld has today disposed of half of its 2.9% interest in Acerinox, S.A.
(`Acerinox`), an international stainless steel producer for an approximate value
of R347 million in cash.
Highveld acquired the Acerinox shares at the time of disposing of 64% of its
stake in Columbus Stainless to Acerinox on 1 January 2002. In terms of the
agreement entered into with Acerinox at the time of that transaction, Highveld
was not permitted to dispose of its Acerinox shares until January 2005, when
half could be disposed of, with the remainder released in January 2007 (`the
lock-up`). This investment was not considered core to the corporation`s
business and has consequently been monetized as soon as the lock-up period
expired.
The pro forma financial effects of the disposal are illustrated in the table
below, based on the financial results for the six months ended 30 June 2004 and
the undernoted assumptions. It should however be noted that due to the
illustrative nature, it may not fairly reflect Highveld`s actual financial
position.
Measure cents Before Pro forma After % change
per share disposal Adjustments disposal
Headline 365.0 3.6 368.6 1.0
earnings
Basic earnings 302.9 86.3 389.2 28.4
Net asset 1994.9 47.6 2042.5 2.4
value
Net tangible 1994.9 47.6 2042.5 2.4
asset value
Notes:
The effects on headline and attributable earnings per share were calculated on
the assumptions that the disposal was effected on 1 January 2004.
The adjustments to headline and attributable earnings per share reflect,
firstly, interest received on the proceeds of the disposal at an interest rate
of 5.5% after tax and, secondly, the reversal of dividends and capital
distributions received from Acerinox during the period.
The effects on net and net tangible asset value per share were calculated on the
assumption that the disposal was effected on 30 June 2004.
The adjustments to net and net tangible asset value per share reflect the
reversal of the book value of the investment in Acerinox and the net cash
proceeds from the disposal.
Witbank
7 January 2005
Sponsor: Cazenove
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