14th Jul 2006 07:01
Anglo American PLC14 July 2006 News Release 14 July 2006 JOINT ANNOUNCEMENT BY ANGLO AMERICAN PLC, Evraz Group S.A. and Credit Suisse Anglo American plc ("Anglo American"), Evraz Group S.A. ("Evraz") and CreditSuisse ("Credit Suisse") are pleased to announce that agreement has been reachedin relation to the sale by Anglo American of its shares in Highveld Steel andVanadium Corporation Limited ("Highveld"). Evraz and Credit Suisse have eachacquired 24.9% of Highveld's share capital from Anglo American. These saleshave closed. Evraz has an option to increase its stake in Highveld once regulatory approvalsare received, including from competition authorities in South Africa andelsewhere. Evraz intends to file for such regulatory approvals as soon aspossible. Subject to Evraz receiving such regulatory approvals, Evraz will beentitled to purchase Anglo American's remaining 29.2% shareholding as well asthe 24.9% holding of Credit Suisse through separate option agreements. ShouldEvraz increase its interest beyond 35%, it will be obliged to make an offer toall shareholders of Highveld. On implementation of the Anglo American option arrangement, the aggregate amountthat will have been realised by Anglo American for its 79% interest in Highveldis R4,885m (US$678m converted to ZAR at R7.20/US$, the rate of exchangeprevailing at the date of this announcement), equivalent to an average of R62.36per Highveld share. This represents a 13% premium to the volume weighted averageprice of R55.15 per share for the 30-day period preceding Anglo American'sannouncement on 26 October 2005 in which it recorded, inter alia, its intentionto dispose of its shareholding in Highveld. Anglo American and Credit Suisse have agreed that Anglo American will retain thevoting rights in respect of the shares acquired by Credit Suisse. AngloAmerican will retain representatives on the Highveld board until such time asAnglo American disposes of all its shares in Highveld. Evraz's Chairman, Alexander Frolov, said: "Evraz has great confidence in theSouth African steel industry and is excited by its new investment in Highveldand by the outlook for steel and vanadium markets. The South African steelmarket is experiencing strong demand growth driven by an upswing in new mining,infrastructure and industrial projects. We have high expectations of Highveld'sinternal growth plans for both its vanadium and steel businesses, including theexpansion plan in excess of R1bn which will increase steel output by more than20%. Evraz is committed to advancing black economic empowerment at Highveld." Tony Trahar, Chief Executive of Anglo American, said: "This represents anotherimportant step in the execution of the Group's strategy as announced in Octoberlast year. This substantial foreign direct investment by Evraz and Credit Suissein South Africa is a strong vote of confidence in the country's prospects andwill ensure that Highveld remains an efficient competitor in the South Africanand global markets." Citigroup has acted as exclusive financial adviser to Anglo American withrespect to the transaction. Credit Suisse and ABN Amro have acted as jointfinancial advisers to Evraz. Notes to editors: Highveld Steel and Vanadium is a leading vanadium producer and also producessteel, ferroalloys, and carbonaceous products. Ore for the steelworks andVanchem is obtained from Highveld's Mapochs mine near Roossenekal in Mpumalanga.Hochvanadium is a wholly owned subsidiary in Austria which processes and sellsvanadium products. Transalloys and Rand Carbide produce manganese alloys,ferrosilicon and carbonaceous products. Anglo American plc is one of the world's largest mining and natural resourcegroups. With its subsidiaries, joint ventures and associates, it is a globalleader in platinum group metals, gold and diamonds, with significant interestsin coal, base and ferrous metals, industrial minerals and paper and packaging.The group is geographically diverse, with operations in Africa, Europe, Southand North America, Australia and Asia. (www.angloamerican.co.uk) Evraz is one of the world's largest vertically integrated steel and miningbusinesses with operations in Russia, Italy and the Czech Republic. Evraz hasextensive experience and technical expertise in the production of steel and, in2005, produced 13.9 million tonnes of crude steel. Evraz is listed on theLondon Stock Exchange with a market capitalisation close to $9bn.(www.evraz.com) Credit Suisse. As one of the world's leading banks, Credit Suisse provides itsclients with investment banking, private banking and asset management servicesworldwide. Credit Suisse offers advisory services, comprehensive solutions andinnovative products to companies, institutional clients and high-net-worthprivate clients globally, as well as retail clients in Switzerland. CreditSuisse is active in over 50 countries and employs approximately 40,000 people.Credit Suisse's parent company, Credit Suisse Group, is a leading globalfinancial services company headquartered in Zurich. Credit Suisse Group'sregistered shares (CSGN) are listed in Switzerland and, in the form of AmericanDepositary Shares (CSR), in New York. Further information about Credit Suissecan be found at www.credit-suisse.com. Contacts: Anglo American London: Johannesburg:Investor Relations Investor/Media RelationsCharles Gordon Anne Dunn+44 20 7968 8933 +27 11 638 4730 +27 82 448 2684 Media RelationsPam Bell+44 20 7968 8568 Evraz Irina Kibina Nikolay KudryashovVice President, Corporate Affairs Director, Media Relationsand Investor Relations Director+7 (495) [email protected] Credit Suisse Jeremy Fletcher Hugh RichardsManaging Director Director+44 20 7888 1347 +44 20 7888 7885 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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