HVL
HVL
Highveld - Further cautionary announcement
Highveld Steel and Vanadium Corporation Limited
Registration no. 1960/001900/06
(Incorporated in the Republic of South Africa)
("Highveld")
Share code: HVL
ISIN code: ZAE000003422
Further cautionary announcement
Shareholders are referred to the initial Cautionary Announcement published
on 26 October 2005, as well as to subsequent Cautionary Announcements,
relating to the sale by Anglo American plc ("Anglo American") of its
shareholding in Highveld.
The attention of shareholders is again drawn to the joint announcement
issued by Anglo American, Evraz Group S.A. ("Evraz") and Credit Suisse on
14 July 2006 announcing that agreement had been reached in relation to the
sale by Anglo American of its shares in Highveld; as well as to the Anglo
American Interim Results Announcement dated 4 August 2006.
Evraz and Credit Suisse have each acquired 24.9 per cent of Highveld"s
share capital from Anglo American for an aggregate consideration of $412
million. These sales have closed.
Evraz has an option to increase its stake in Highveld once regulatory
approvals are received, including from competition authorities in South
Africa and elsewhere. Subject to Evraz receiving such regulatory
approvals, Evraz will be entitled to purchase Anglo American"s remaining
29.2 per cent shareholding for $266 million. This amount will be reduced
by any dividends paid by Highveld prior to Anglo American selling its
remaining shares. In terms of a separate option agreement, Evraz has an
option over the 24.9 per cent held by Credit Suisse in Highveld. Should
Evraz increase its interest beyond 35 per cent, it will be obliged to make
an offer to all shareholders of Highveld.
Shareholders are, therefore, advised to continue to exercise caution in
their dealings in Highveld shares and a further announcement will be made
in due course.
Witbank
15 September 2006
Sponsor
JPMorgan Equities Limited
Date: 15/09/2006 03:08:03 PM Produced by the JSE SENS Department
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