REG - Anglo American PLC - Anglo American intention to sell interest in LT <Origin Href="QuoteRef">AAL.L</Origin>

Anglo AmericanAnnouncement

06/09/2014 02:36

For best results when printing this announcement, please click on the link
below:

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20140707:nRSG5569La


RNS Number : 5569L
Anglo American PLC
07 July 2014 
 
                                                                                                                                                                                                                                                                                                     
 7 July 2014                                                                                                                                                                                                                                                                                       
 Anglo American announces its intention to sell its 50% interest in Lafarge Tarmac to Lafarge for a minimum value of £885 million ($1.5 billion) (subject to Lafarge / Holcim merger related conditions, including Lafarge Tarmac being deemed an acceptable divestment remedy by the regulators)  
                                                                                                                                                                                                                                                                                                   
 
 
Anglo American plc ("Anglo American") announces that it has reached an
agreement in principle for the sale of its 50% ownership interest in Lafarge
Tarmac Holdings Limited ("Lafarge Tarmac" or the "JV") to Lafarge SA
("Lafarge") for a minimum value of £885 million (approximately $1.5 billion)
in cash, on a debt and cash free basis and subject to other customary working
capital adjustments. 
 
An announcement is being made at this stage as Lafarge intends to offer a full
divestment of the JV to the European Commission as a remedy for the UK market
in respect of the proposed merger of Lafarge and Holcim Ltd ("Holcim"). Under
the terms of the in principle agreement, which is not legally binding, the
sale will be subject to a number of conditions including the completion of the
Lafarge /Holcim merger, the divestment of Lafarge Tarmac being accepted as a
suitable remedy and approval of this sale transaction by the necessary
regulators.  Lafarge and Holcim have announced that they expect the merger to
be completed in the first half of 2015. Anglo American and Lafarge will work
towards finalising the terms of a definitive agreement in Q3 2014. 
 
In the event that a subsequent divestment of Lafarge Tarmac is agreed within
18 months of this sale being completed, then Anglo American will participate
in a minority proportion of the upside beyond a small premium to the terms of
this proposed transaction. 
 
Anglo American expects to use the proceeds to pay down debt. 
 
For further information, please contact: 
 
 Media                                                    Investors                                  
 UKJames Wyatt-TilbyTel: +44 (0)20 7968 8759              UKPaul GallowayTel: +44 (0)20 7968 8718    
 Emily BlythTel: +44 (0)20 7968 8481                      Caroline CramptonTel: +44 (0)20 7968 2192  
 South AfricaPranill RamchanderTel: +27 (0)11 638 2592    Sarah McNallyTel: +44 (0)20 7968 8747      
 
 
Notes to editors: 
 
Aside from this proposed transaction, Anglo American expects to receive
additional cash proceeds of between £57 million and £67 million (approximately
$98 million to $115 million) as a result of prior transactions involving the
formation of the JV and the transfer of Tarmac Building Products assets to the
JV. 
 
Lafarge Tarmac was formed in January 2013 following the merger of Anglo
American and Lafarge's cement, aggregates, ready-mixed concrete, asphalt and
asphalt surfacing and maintenance services, and waste services businesses in
the United Kingdom.  As at 31 December 2013, Anglo American's 50% reported
interest in Lafarge Tarmac's gross assets was £1,430 million, including
goodwill. For the period ending 31 December 2013, prior to any Anglo American
Group adjustments, the loss before tax attributable to 50% of Lafarge Tarmac
was £33m. 
 
Anglo American is one of the world's largest mining companies, is
headquartered in the UK and listed on the London and Johannesburg stock
exchanges. Our portfolio of mining businesses meets our customers' changing
needs and spans bulk commodities - iron ore and manganese, metallurgical coal
and thermal coal; base metals and minerals - copper, nickel, niobium and
phosphates; and precious metals and minerals - in which we are a global leader
in both platinum and diamonds.  At Anglo American, we are committed to working
together with our stakeholders - our investors, our partners and our employees
- to create sustainable value that makes a real difference, while upholding
the highest standards of safety and responsibility across all our businesses
and geographies. The company's mining operations, pipeline of growth projects
and exploration activities span southern Africa, South America, Australia,
North America, Asia and Europe. 
 
www.angloamerican.com 
 
This information is provided by RNS
The company news service from the London Stock Exchange