Johannesburg | Monday
THE battle for control of Australia’s biggest gold miner Normandy heated up on Monday with AngloGold claiming its offer was now superior to that of American rival Newmont.
AngloGold chief executive Bobby Godsell said at the close of the New York market on Friday, the AngloGold and Newmont offers were just one cent apart.
”The market value of AngloGold’s and Newmont’s offers is now virtually identical,” Godsell said.
”It is my view that our offer is now potentially superior for retail investors, particularly if they take up the AngloGold top-up facility.”
The implied value of AngloGold’s offer is AU$1,94 per Normandy share compared to an implied value of Newmont’s offer of AU$1,95.
The top-up facility enables a Normandy shareholder to acquire up to AU$7 500 additional AngloGold shares at a 7,5% discount to AngloGold’s 30-day average share price.
”In fact, given the recent rise in the AngloGold share price the allotment price is currently at around a 15% discount to AngloGold’s prevailing market price, ” a statement from the company said.
In addition to the benefits of the top-up facility, shareholders who accept AngloGold’s offer and retained their shares would be entitled to the company’s 2001 final dividend, which would will be declared at the end of January.
Shares acquired through the top-up facility would also qualify for the dividend.
Godsell said: ”To date in excess of 2 200 shareholders have accepted AngloGold’s offer and I look forward to welcoming many more Normandy shareholders as new shareholders in AngloGold.”
At present the inherent discount in the top-up facility is currently substantially higher due to the strong increase in AngloGold’s share price.
This is because the discounted allotment price under the facility is calculated against the 30-day weighted average price of AngloGold shares.
Newmont and AngloGold have been battling to take control of Adelaide-based Normandy since November. – Sapa