Mondi Agreement with Shanduka
Anglo American PLC
19 August 2004
News Release
19 August 2004
Mondi South Africa agrees empowerment transaction with Shanduka
Anglo American plc announces that its wholly-owned paper and packaging
subsidiary, Mondi South Africa ("Mondi") and Shanduka Resources ("Shanduka"),
have reached agreement for Shanduka to acquire a 42% equity stake in a new
entity which will own Mondi's South African packaging businesses.
The new entity, Mondi Packaging South Africa ("MPSA"), will include Mondi's
board and paper mills at Springs, Felixton and Piet Retief, its corrugated
converting business (Mondipak) and its waste paper collection and processing
operations (Mondi Recycling) and has been valued on a debt-free basis at R2.45
billion.
Mondi and Shanduka have agreed to inject 3% and 2%, respectively of their equity
in MPSA into an appropriate vehicle to facilitate participation by Mondi's 6,400
employees, the majority of whom are historically disadvantaged South Africans.
Mondi has also agreed to inject into the same vehicle 4% of its 58% equity stake
in Mondi Shanduka Newsprint (further to the transaction announced in December
2003). Detailed arrangements for the financing of, and participation in the
equity ownership vehicle will be formulated and then discussed with employees
before the planned completion of the MPSA transaction at the end of 2004.
The MPSA transaction contemplates non-recourse funding from Standard Bank, a
layer of subordinated debt provided by Mondi and equity contributed by Mondi and
Shanduka. Completion of the transaction is subject to successful completion of a
due diligence process, finalisation of detailed agreements and the necessary
board approvals.
For further information:
Anglo American - Johannesburg
Investor Relations Media Relations
Anne Dunn Marion Dixon
Tel: +27 11 638 4730 Tel: +27 11 638 3001
Notes to Editors:
Anglo American plc is one of the world's largest mining and natural resource
groups. With its subsidiaries, joint ventures and associates, it is a global
leader in gold, platinum group metals and diamonds, with significant interests
in coal, base and ferrous metals, industrial minerals and forest products. The
group is geographically diverse, with operations in Africa, Europe, South and
North America, Australia and Asia. (www.angloamerican.co.uk)
Shanduka Group (formerly Millennium Consolidated Investments) is a black-owned
and managed investment company. Shanduka's team of professional and experienced
business executives seeks to proactively drive shareholder value for its
partners and to strategically transform them into truly empowered South African
companies. In addition to the development of its business portfolio, the
Shanduka Group is committed to the upliftment of historically disadvantaged
communities. It has established the Shanduka Foundation to fortify education in
South African schools, to improve business skills of black people and to assist
in the development of small and medium enterprises in the country.
This information is provided by RNS
The company news service from the London Stock Exchange
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