Categories

SA : Mining giant Anglo American plays cards close to its chest

WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.

Original Post Date: 2007-02-20 Time: 00:00:00  Posted By: Jan

Business Day (Johannesburg)

February 19, 2007

Posted to the web February 19, 2007

Rob Rose

Johannesburg

MINING giant Anglo American is playing its cards close to its chest on rumours that it plans to sell its 41% of AngloGold Ashanti to Russia’s largest gold company, Polyus — a stake worth R38bn.

Although a number of prospective buyers have already expressed interest, the UK Sunday Times reported yesterday that Polyus had “approached Anglo American to buy its stake” in AngloGold. The future of AngloGold Ashanti, the world’s largest gold producer behind Canada’s Barrick, remains uncertain after SA’s largest company, Anglo American, said it would sell its gold assets within two years as part of a wider overhaul that will also see it reduce its interest in paper unit Mondi. The sale of the AngloGold stake would be one of the largest deals in SA’s gold mining history.

Polyus was formed in March with the gold assets of Russia’s Norilsk Nickel. It has some experience with South African gold firms, having previously held 20% of Gold Fields, which it sold last year for R14bn.

The Sunday Times report says Polyus is eyeing either part or all of Anglo American’s 41% interest, which at AngloGold’s current price of R343 a share, would be worth R38bn.

Yesterday, Anglo American predictably would not provide any further information, with spokeswoman Anne Dunn saying the company “would not comment on speculation” and that Anglo would have made an announcement if there had been anything to say. AngloGold was equally tight-lipped, with spokesman Steve Lenahan saying he would not comment.

Last week, AngloGold CEO Bobby Godsell, who also sits on Anglo American’s board, said “we would like certainty as soon as possible” around the Anglo American sale to reassure shareholders — suggesting that various discussions are already taking place.

On Wednesday, Anglo American announces its results for last year — the final set of financials under CEO Tony Trahar, who is handing over to Cynthia Carroll — and the mining house may give further hints about its disposals process as it announces what some pundits say will be earnings growth in excess of 50%. One analyst contacted yesterday said Anglo American would probably welcome the opportunity to sell its entire AngloGold stake to a single bidder, such as Polyus, rather than piecemeal.

But if Polyus is indeed interested, it remains to be seen whether it will want to buy all of Anglo’s 41% interest in AngloGold, as this would oblige it to make an offer to all AngloGold shareholders.

Relevant Links

Southern Africa

South Africa

Mining

By June, Polyus had about R11bn ($1,6bn) in cash and another R8,6bn ($1,2bn) in investments, of which R7bn was being held in bank deposits. Polyus also had a comparatively small amount of debt on its books, suggesting it could afford to finance a big acquisition.

In September, Polyus set in place a new development strategy to increase its gold output more than threefold by 2015. It would do this by “boosting production and acquiring new assets and licences in Russia and internationally, where suitable opportunities arise”.

If Polyus were to get its hands on AngloGold, one of the three largest gold companies in the world alongside Canada’s Barrick and the US-based Newmont, this would help it achieve its goals earlier than expected.

Source: Business Day

URL: http://allafrica.com/stories/200702190314.htm…br>
[Posted by: ]