HVL
HVL
Highveld - Further cautionary announcement
Highveld Steel and Vanadium Corporation Limited
(Incorporated in the Republic of South Africa)
Registration number: 1960/001900/06
Share code: HVL & ISIN: ZAE000003422
("Highveld")
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
27 October 2006
Sponsor: J.P. Morgan Equities Limited
Date: 27/10/2006 04:07:12 PM Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
