23rd Mar 2006 07:01
Anglo American PLC23 March 2006 News Release 23 March 2006 Anglo American plc announces increase in buyback to US $2 billion Anglo American plc ("Anglo American" or the "Company") US$2bn Purchases of Ordinary Shares in the Company Further to the announcements made on 26 October 2005 and 22 February 2006, AngloAmerican today announces that its programme of market purchases of its OrdinaryShares is increased by US$1bn to a total of US$2bn. The increase is due to the conversion to date of the majority of the US$1.1bnconvertible bonds issued in April 2002 into Ordinary Shares and the programmewill commence immediately. Purchases will be made either by the Company pursuant to the authority ofshareholders granted at the AGM of the Company in April 2005 (or any renewal ofsuch authority granted at the AGM of the Company to be held in April 2006) or byan independent company to be funded by a wholly owned overseas subsidiary of theCompany, which wholly owned subsidiary will have the right to nominate atransferee for such shares. Purchases of shares under the programme will result in an enhancement of theCompany's earnings per share whilst contributing to the efficient management ofthe Anglo American group's capital. The ordinary share capital of the independent company is owned by a charitabletrust and a majority of the independent company's directors are independent ofthe Anglo American group. A wholly owned subsidiary of the Company will, underthe arrangements entered into with the independent company, make purchases ofAnglo American shares on behalf of the independent company within the limits ofthe programme and at prices per share which will be no more than the higher ofthe price of the last independent trade in such shares and the highest currentindependent bid for such shares. Out of cash dividends received by theindependent company on the Anglo American shares held by it, the charitabletrust shareholder in the independent company will be entitled to receiveapproximately 10 per cent; the balance will be distributed to the Anglo Americangroup. During the term of the arrangement, the independent company has agreedthat it will not exercise voting rights in respect of shares in the Company heldby it. The shares purchased by the independent company will be treated in theaccounts of Anglo American as treasury shares. Purchases of Anglo Americanshares by the independent company under these arrangements will be announced inkeeping with existing regulations governing UK corporate share repurchases. For further information: Anglo American Investor Enquires Nick von SchirndingTel: +44 207 968 8540 Charles GordonTel: +44 207 968 8933 Anne DunnTel: +27 11 638 4730 Media Enquiries Pamela BellTel: +44 207 968 8568 Daniel NgwepeTel: +27 11 638 2267 Notes to Editors: 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) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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