Global resources group Anglo American announced on Monday it has sold it 20% stake in South African gold miner Gold Fields to MMC Norilsk Nickel, through its wholly owned subsidiary Norimet, for R7,631-billion, or approximately $1,16-billion.
The sale of the 98 467 758 shares was effected by way of an on-market trade on the JSE Securities Exchange, South Africa.
Anglo American will realise an approximate gain of $480-million on the sale of the Gold Fields shares.
The proceeds from the sale will be used to pay down Anglo American’s South African indebtedness and to finance its ongoing capital expenditure programme in South Africa.
For the financial year ended 2003, Anglo American’s investment in Gold Fields was recorded on its balance sheet at $686-million. In terms of the current financial year, Anglo American will equity account the stake in Gold Fields for the three months ending March 2004.
Citigroup Global Markets acted as financial adviser to Anglo American on the transaction. — I-Net Bridge