AngloGold sells Normandy stake to reduce debt
BY NIC HOPKINS
ANGLOGOLD, the goldmining arm of
Anglo American, has sold its US$159
million (£110 million) stake in Australia’s
Normandy Mining after a failed takeover
bid, but may already be on the trail of
more acquisitions in Australia.
The company, based in Johannesburg,
said yesterday it had sold the 7.1 per cent
stake built through its unsuccessful A$4.2
billion (£1.5 billion) bid for Normandy,
Australia’s biggest goldmining group. It
will use proceeds to cut debt and
strengthen its balance sheet.
Jonathan Best, AngloGold’s chief
financial officer, said: “It was prudent to
realise the cash from the minority stake
as soon as possible so as to avoid any
market risk and to put the funds to
work.”
The stake was sold via a block trade to
UBS Warburg and on the market through
Deutsche Bank.
AngloGold failed to land Normandy after
the rival Newmont, of Colorado, bid
slightly more as part of an US$8 billion
three-way merger with Canada’s Franco
Nevada.
The victory makes Newmont the world’s
biggest gold- miner. AngloGold will fall
to third, behind Canada’s Barrick, which
has just completed a US$2 billion
takeover of Homestake of the US.
However, AngloGold said it continued to
look at acquisition opportunities. The
company is pushing for a closer
relationship with Barrick, and Mr Best
recently said that there was some logic in
talk of a possible merger between the
two companies.
There is also speculation that Australia’s
next largest goldminer, Newcrest, may
now be on AngloGold’s radar.
thetimes.co.uk |
