Mondi South Africa agrees empowerment transaction with Shanduka
19 August, 2004
Anglo American plc announces that its wholly-owned paper and packaging subsidiary, Mondi South Africa (“Mondi”) and Shanduka Resources (“Shanduka”), have reached agreement for Shanduka to acquire a 42% equity stake in a new entity which will own Mondi's South African packaging businesses.
The new entity, Mondi Packaging South Africa (“MPSA”), will include Mondi's board and paper mills at Springs, Felixton and Piet Retief, its corrugated converting business (Mondipak) and its waste paper collection and processing operations (Mondi Recycling) and has been valued on a debt-free basis at R2.45 billion.
Mondi and Shanduka have agreed to inject 3% and 2%, respectively of their equity in MPSA into an appropriate vehicle to facilitate participation by Mondi's 6,400 employees, the majority of whom are historically disadvantaged South Africans. Mondi has also agreed to inject into the same vehicle 4% of its 58% equity stake in Mondi Shanduka Newsprint (further to the transaction announced in December 2003). Detailed arrangements for the financing of, and participation in the equity ownership vehicle will be formulated and then discussed with employees before the planned completion of the MPSA transaction at the end of 2004.
The MPSA transaction contemplates non-recourse funding from Standard Bank, a layer of subordinated debt provided by Mondi and equity contributed by Mondi and Shanduka. Completion of the transaction is subject to successful completion of a due diligence process, finalisation of detailed agreements and the necessary board approvals.
Notes to Editors
Anglo American plc is one of the world's largest mining and natural resource groups. With its subsidiaries, joint ventures and associates, it is a global leader in gold, platinum group metals and diamonds, with significant interests in coal, base and ferrous metals, industrial minerals and forest products. The group is geographically diverse, with operations in Africa, Europe, South and North America, Australia and Asia. (www.angloamerican.co.uk)
Shanduka Group (formerly Millennium Consolidated Investments) is a black-owned and managed investment company. Shanduka's team of professional and experienced business executives seeks to proactively drive shareholder value for its partners and to strategically transform them into truly empowered South African companies. In addition to the development of its business portfolio, the Shanduka Group is committed to the upliftment of historically disadvantaged communities. It has established the Shanduka Foundation to fortify education in South African schools, to improve business skills of black people and to assist in the development of small and medium enterprises in the country.
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