Stake in FirstRand - Disposal
Anglo American PLC
6 December 2000
News Release
6 December 2000
ANGLO AMERICAN PLC DISPOSES OF SUBSTANTIAL STAKE IN FIRSTRAND
Anglo American ('AA plc') has previously announced its intention to dispose of
non-core assets, including its significant interest of 20.6% in FirstRand
Limited ('FirstRand'). The board of AA plc has been investigating a number of
opportunities to achieve its objective of disposing of FirstRand and is
pleased to announce an agreement in principle for the disposal of
approximately 74.5% of its holding.
AA plc and Remgro Limited ('Remgro'), an investment holding company, have
concluded an agreement in terms of which AA plc will receive 165 248 324
shares (representing 7.1% of the issued share capital) in Billiton Plc
('Billiton') and 51 134 914 shares (11.3% of the issued share capital) in Gold
Fields Limited ('Gold Fields') from Remgro in consideration for 834 008 267
shares (15.3% of the issued share capital) in FirstRand.
De Beers has also announced that it has entered into an agreement in terms of
which De Beers will receive from Remgro 24 726 874 shares (1.1% of the issued
share capital) in Billiton in consideration for 98 491 733 shares (1.8% of the
issued share capital) in FirstRand.
The agreements provide as follows:
* The effective date of the transaction is 1 January 2001.
* Remgro will dispose of its entire shareholding in Billiton for FirstRand
shares held by AA plc and De Beers.
* Remgro will dispose of its entire shareholding in Gold Fields for
FirstRand shares held by AA plc.
* AA plc has undertaken that neither it nor its associates will make an
unsolicited bid for Billiton during the twelve months to 31 December 2001
and will not increase its stake in Billiton to beyond 15% during that
period. Should, however, a third party make a take-over bid for Billiton,
these undertakings would fall away.
* Should any party make a successful bid for Gold Fields on or before 30
June 2001 at a price in excess of 2500 SA cents per Gold Fields share, AA
plc and Remgro will participate equally in any amount received by AA plc
pursuant to that bid in excess of 2500 SA cents per share in respect of
the 51 134 914 Gold Fields shares that AA plc will acquire from Remgro.
This transaction represents another significant step in AA plc's programme for
divestment of non-core assets and results in AA plc acquiring interests in two
quality mining assets which complement its focus on the mining and resources
sector.
The transaction is subject to the following conditions precedent:
* The approval of Remgro's shareholders in general meeting if required
and, in that event, shareholders controlling approximately 42.2% of the
voting rights have undertaken to vote in favour of the exchange at all
meetings necessary to approve the transaction.
* Any regulatory approvals as may be required.
On completion of this transaction, AA plc will continue to hold approximately
5.3% of the issued share capital of FirstRand and has no current plans to
dispose of this shareholding.
Tony Trahar, Chief Executive of Anglo American plc, in commenting on the
Group's disposal process which has realised around US$1.6 billion this year
(prior to this transaction) added, 'This transaction is a further significant
step in realising Anglo American's strategy of concentrating on our core
mining and natural resources businesses. We have acquired strategic
investments in businesses we know well and which will give us increased
flexibility. FirstRand is an excellent financial services group but the sale
was never likely to be easy given its substantial size in relation to the
South African financial services sector. We have enjoyed a very good
relationship with the management of FirstRand and we are delighted that the
disposal has been achieved in a shorter time frame than we predicted and in a
positive way for all parties concerned.'
Please note: There will be a teleconference regarding this announcement in
London today at 16.30hrs (GMT). Dial in number : +44 (0) 20 8401 1043 . Please
quote 'Anglo American'.
A replay facility will be available until 13.12.00. Access code: 662 272
Dial in number : +44 (0)20 8288 4459
For further information:
Anglo American - London
Investor Relations Media Relations
Nick von Schirnding Kate Aindow
Tel: +44 (0)20 7698 8540 Tel: +44 (0)20 7698 8619
Anglo American - Johannesburg
Investor Relations Media Relations
Anne Dunn Marion Dixon
Tel: +27 11 638 4730 Tel: +27 11 638 3001
Corporate advisor to Anglo American
UBS Warburg Corporate Finance (South Africa) (Proprietary) Limited
Legal advisor to Anglo American
Webber Wentzel Bowens
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 and developments in Africa,
Europe, South and North America and Australia. (www.angloamerican.co.uk)
Billiton plc is one of the world's major resource groups. It is one of the
world's largest producers of aluminium, the world's largest exporter of
thermal coal and has a controlling interest in the world's leading integrated
producer of ferrochrome and ferromanganese. Billiton also has a 50 per cent
interest in Richard Bay Minerals, the world's largest producer of titanium
dioxide slag and recently acquired Rio Algom Limited.
(www.billiton.com)
Gold Fields Limited, one of the largest gold producers in the world, is an
independent precious metals company with exploration, mining and beneficiation
as its core business.
(www.goldfields.co.za)
Remgro Limited is an investment holding company, which derives its cash income
mainly from dividends received. Its interests primarily consist of strategic
investments in tobacco products, mining, financial services, packaging,
healthcare, food, wine and spirits and various other trademark products.
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