Global Capital Markets

Anglo American, the UK-listed mining group, has hired advisers to conduct a break-up of the company, according to an unsourced report in The Sunday Times. The break-up is likely to start with a spin off of Mondi- its packaging operations, and the sale of its GBP 4bn (EUR 5.8bn) shareholding in Anglo Gold Ashanti, the Gold mining group, according to the report. Anglo American has hired UBS to adviser on the sale or flotation of Mondi, the report said. Shareholders want Mondi to be floated in the UK, the item added. Anglo American is already in talks with the government of South Africa regarding repatriation of the proceeds of a sale or spin-off without large tax liabilities. It is believed that UK-based fund management groups want shares in Mondi rather than generating cash via a sale, the report said. However, some European and US shareholders who have existing stakes in packaging groups want a straight sale.
Anglo American has hired Goldman Sachs to sell its 51% stake in Anglo Gold, the report added. Due to the size of the stake, the preferred option is for a three-part share placing, the item said. The group has hired Citigroup to sell its 79% stake in Highveld Steel, the South African steel group, the item said. Tata Steel is interested in Highveld, the report added. Anglo American has yet to hire an adviser for the sale of Tarmac, the UK-based construction materials group. Shareholders, however, are likely to push for the sale of Tarmac after the initial sales, the article said.
The Oppenheimer family of South Africa are believed to be interested in selling their stake in Anglo Gold, the item said. Newmont Mining, the US-based mining group, and Barrick Gold, the Canadian gold miner, were mentioned in the report as potential bidders for the stake. Analysts cited by the report said the appointments of advisers suggest the sales might complete inside six months.

Source Sunday Times
Value GBP 4,000m (value of Anglo American's 51% stake in Anglo Gold Ashanti (Sunday Times))