Anglo American acquires control of the Minas-Rio and Amapá
Anglo American has signed an agreement to acquire a 63.5% shareholding in a new company IronX, which will own MMX’s current 51% interest in the Minas-Rio iron ore project and 70% interest in the Amapá iron ore system.
Anglo American plc (“Anglo American”) is pleased to announce that, following its announcement dated 17 January 2008, it has signed an agreement with the
controlling shareholder of MMX Mineração e Metálicos S.A. (“MMX”), Mr Eike Batista, Chairman & CEO of MMX, and certain other MMX shareholders (together “the Selling Shareholders”), to acquire a 63.5% shareholding in a new company (“IronX”) which will be demerged from MMX and will own MMX’s current 51% interest in the Minas-Rio iron ore project and 70% interest in the Amapá iron ore system. Mr Eike Batista will be Chairman of IronX.
Anglo American has committed, after completion of this transaction, to extend an offer to the minority shareholders of IronX at the same price per share paid to the Selling Shareholders, the successful completion of which would result in Anglo American owning 100% of the Minas-Rio project, 70% of the Amapá system and 49% of LLX Minas-Rio, the owner of the Port of Açu. Anglo American acquired 49% of the Minas-Rio project as part of its original investment announced in April 2007, which included 49% of LLX Minas-Rio. These two projects, together with the planned Kumba expansions, will significantly increase Anglo American’s participation in the seaborne iron ore market to approximately 150Mtpa by 2017 in line with Anglo American’s strategic goal to become a significant player in the iron ore industry.
IronX’s gross assets at 31 December 2007, on a proforma basis, were R$2.2 billion (US$1.2 billion) with a proforma operating loss for the year of R$25 million (US$13 million). Anglo American will pay US$5.5 billion in cash for 100% of the issued and outstanding shares of IronX, or approximately US$361.12 per IronX share (assuming one IronX share for each current MMX share).
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.