MVELAPHANDA RESOURCES LIMITED - SEXWALE AND MVELAPHANDA RESOURCES ENDORSE A NON-
HOSTILE OUTCOME TO GOLD FIELDS/HARMONY BATTLE TO END VALUE DESTRUCTION.
Mvelaphanda Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number 1980/001395/06)
Share code: MVL ISIN: ZAE000050266
(`Mvela Resources`)
FOR IMMEDIATE RELEASE
SEXWALE AND MVELAPHANDA RESOURCES ENDORSE A NON-HOSTILE OUTCOME TO GOLD
FIELDS/HARMONY BATTLE TO END VALUE DESTRUCTION.
17 January 2005
Johannesburg, 17 January 2005. Tokyo Sexwale, Chairman of Mvelaphanda Resources
wishes to reiterate the company`s position with respect to the current hostile
bid for Gold Fields by Harmony Gold Mining Company Limited. This follows a
recent headline in a media publication indicating that Mr Sexwale endorses the
Harmony offer.
Mr Sexwale speaking on behalf of Mvelaphanda Resources, a stakeholder in Gold
Fields through its 15% interest in the Gold Fields` South African operations,
publicly raised concerns on 9 December 2004, that it believed the hostile bid
for Gold Fields by Harmony had led to, and could lead to, further value
destruction for all stakeholders and urged Gold Fields and Harmony to engage
with each other and other stakeholders in an attempt to find a way to prevent
additional value leakage.
Mvelaphanda Resources has at no point, explicitly or tacitly, supported
Harmony`s hostile offer and continues to believe that Gold Fields and Harmony
shareholders should be the ultimate arbiters of their company`s destinies,
however, in a non-hostile environment.
Gold Fields` Board has turned down the current Harmony offer on the basis that
it significantly undervalues the Gold Fields assets and does not reflect the
positive outlook for the company both locally and abroad. This position is
supported by Mr Sexwale and Mvelaphanda Resources. Mvelaphanda Resources will
support amongst other alternatives, a higher-offer and a revised transaction on
negotiated, non-hostile terms, that are deemed acceptable by the Gold Fields
Board and its shareholders.
Mr Sexwale continues to believe that a favourable outcome is possible, with a
number of alternative options available, but such outcomes should only be done
on the basis of:
approval from Gold Fields and Harmony shareholders,
a non-hostile offer environment,
a transparent and see-through negotiation and valuation process, which will
enable the respective boards and shareholders to make an informed decision
ENQUIRIES:
Mvelaphanda Resources
James Wellsted
Tel: (011) 325 5323
Mobile: 083 453 4014
james@mvelares.co.za
Date: 17/01/2005 02:16:01 PM
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