Sydney | Thursday
THE takeover battle for Australia’s Normandy Mining Ltd intensified on Thursday when South Africa’s AngloGold added a cash component to its existing US$1,66-billion scrip offer.
The South African giant moved to challenge US-based Newmont Mining Corp’s 3,8-billion dollar (US$1,97-billion) cash and scrip offer for Normandy, which is Australia’s biggest gold producer.
Earlier this month Normandy formally rejected AngloGold’s original 3,2-billion dollar (US$1,66-billion) takeover proposal, forcing the South Africans to add a cash premium to their offer.
In a statement to the Australian Stock Exchange, AngloGold moved to outflank Newmont by ”adding a cash payment of 20 Australian cents per Normandy share to its original offer of 2,15 AngloGold shares per 100 Normandy shares”.
The AngloGold statement said the company’s revised offer ”values Normandy at 1,65 Australian dollars per share based on AngloGold’s closing share price on 28 November 2001 on the New York Stock Exchange (NYSE)”.
”Newmont’s offer is 1,45 Australian dollars per share (with a possible additional 5 cents per share, payable in the event of a 90% acceptance of the offer), based on Newmont’s closing share price on the NYSE on the same date,” it said.
”Based on the weighted average share prices of AngloGold and Newmont since the announcement of the Newmont offer on 14 November 2001 and the relevant US dollar:Australian dollar exchange rates over this period, AngloGold’s revised offer is equivalent to 1,66 dollars per share, compared with the Newmont offer of 1,46 dollars per Normandy share.”
The AngloGold statement said the company had also eased conditions attached to its bid, although it still required the approval of its own shareholders to be granted at a meeting scheduled for December 19.
”This granting of approval is expected to be forthcoming, given that AngloGold’s 53% shareholder, Anglo American plc, has provided an unqualified commitment to vote in favour of the relevant resolution,” it said. – Sapa-AFP