Highveld Steel and Vanadium Corporation Limited - Disposal Of Investments In
Columbus And Acerinox
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
DISPOSAL OF INVESTMENTS IN COLUMBUS AND ACERINOX
Highveld has reached agreement with Acerinox, S.A. (`Acerinox`), an
international stainless steel producer to dispose of Highveld`s 12% interest in
Columbus Stainless (Proprietary) Limited (`Columbus`) and 1.45% residual
interest in Acerinox to Acerinox for an aggregate cash consideration of _91.4
million (the `disposal`). Highveld acquired the Acerinox shares at the time of
disposing of 64% of its one-third stake in Columbus Stainless Joint Venture to
Acerinox on 1 January 2002. The investments in Columbus and Acerinox were not
considered to be core to the corporation`s business.
The effective date of the disposal is 13 May 2005. The proceeds from the sale
will be used for general corporate purposes.
The pro forma financial effects of the disposal are illustrated in the table
below, based on the financial results for the year ended 31 December 2004 and
the undernoted assumptions. It should, however, be noted that due to the
illustrative nature of pro forma calculations, this table may not fairly reflect
Highveld`s actual financial position.
Measure per share Before Pro forma After % change
(cents) disposal adjustments disposal
Headline earnings 881 26 907 3.0
Attributable 758 26 784 3.4
earnings
Net asset value 2 371 49 2 420 2.1
Tangible net asset 2 371 49 2 420 2.1
value
Notes:
1. The effects on headline and attributable earnings per share were calculated
on the assumption 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.
2. The effects on net asset value and net tangible asset value per share were
calculated on the assumption that the disposal was effected on 31 December 2004.
The adjustments to net asset value 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.
As at 31 December 2004 the carrying values of the investments in Acerinox and
Columbus were R350 million and R300 million respectively.
Witbank
13 May 2005
Sponsor
JP Morgan Equities Limited
Date: 13/05/2005 05:30:07 PM
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