|Net assets disposed|
|Other non-current assets||43||1,208|
|Group's share of net assets immediately prior to disposal||420||4,919|
|Less: Retained investments in associates||–||(393)|
|Less: Retained financial asset investments||–||(318)|
|Net assets disposed||420||4,208|
|Cumulative translation differences recycled from reserves||(2)||(334)|
|Fair value losses arising on transactions||–||68|
|Dividend in specie relating to Mondi demerger||–||(3,718)|
|Net gain on disposals||119||157|
|Net sale proceeds||537||384|
|Net cash and cash equivalents disposed||(4)||(437)|
|Realised foreign exchange||(13)||–|
|Net cash inflow/(outflow) from disposals and demerger(2)||468||(49)|
The disposal of Namakwa Sands was the only material disposal of a business in the year.
On 1 October 2008 Namakwa Sands was sold to Exxaro Resources Limited (Exxaro) for consideration of $330 million including deferred consideration.
The net asset position at the date of disposal, together with the resulting profit on disposal and related cash inflow, is shown below:
|Other non-current assets||4|
|Net assets disposed||292|
|Cumulative translation differences recycled from reserves||1|
|Net gain on disposal||49|
|Net sale proceeds||342|
|Realised foreign exchange||(12)|
|Net cash inflow from disposal of Namakwa Sands||311|
On 3 November 2008 as part of the same transaction, the Group completed the sale of a 26% interest in both the Black Mountain zinc, lead and copper operation and the Gamsberg zinc project for consideration of $23 million.
Significant disposals and demerger of subsidiaries and associates recorded during the year ended 31 December 2007 are summarised below. For further details refer to the Group's financial statements for the year ended 31 December 2007.
On 2 July 2007 the Paper and Packaging business, Mondi, was demerged from the Group by way of a dividend in specie paid to shareholders of $3,718 million. The Paper and Packaging business is presented as a discontinued operation. Refer to note 35 for financial information on discontinued operations. The Group held a 5.3% interest in Mondi at 31 December 2008 and 31 December 2007 through Epoch, Epoch Two and Tarl. Refer to note 28 for more information on these companies.
On 4 May 2007 the Group announced the disposal of the remaining 29.2% shareholding in Highveld to the Evraz Group SA (Evraz) for $238 million. Evraz was granted an option, subject to regulatory approvals, over this stake as part of the original transaction in which the Group sold 49.8% of Highveld to Evraz and Credit Suisse (in July 2006). Evraz exercised their option on 26 April 2007 following requisite regulatory approvals.
In December 2006 the Tongaat-Hulett Group announced the proposed unbundling and listing of Hulamin and simultaneous introduction of BBBEE into both companies.
This transaction was effected on 25 June 2007, and empowerment parties acquired 25% of Tongaat-Hulett and 15% of Hulamin's operations. The Group commenced equity accounting both Tongaat-Hulett and Hulamin as of 25 June 2007. However, in accordance with SIC 12 Tongaat-Hulett and Hulamin are required to consolidate the entities housing the empowerment interests (as they supplied significant funding to these parties to effect the transaction). This has the effect, in accounting terms, of cancelling the shares issued to these parties. As a result, the Group has equity accounted 49.8% and 44.9% of Tongaat-Hulett and Hulamin, respectively. The Group's legal interest in Tongaat-Hulett at 31 December 2008 was 37.1% (2007: 37.2%). The Group's legal interest in Hulamin at 31 December 2008 was 38.4% (2007: 38.4%).
On 2 October 2007 the Group sold 67.1 million shares in AngloGold Ashanti Limited for $2.9 billion. This reduced the Group's shareholding from 41.6% to 17.3%. The Group's representation on the company's board was also withdrawn at this time. The remaining investment is accounted for as a financial asset investment. The Gold business is presented as a discontinued operation. Refer to note 35 for financial information on discontinued operations. The Group's shareholding at 31 December 2008 was 16.2% (2007: 16.6%).