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33. Disposals and demerger of subsidiaries and businesses

US$ million 2008 2007
Net assets disposed
Tangible assets 479 6,197
Other non-current assets 43 1,208
Current assets 210 4,194
Current liabilities (83) (2,416)
Non-current liabilities (113) (3,064)
Net assets(1) 536 6,119
Minority interests (116) (1,200)
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)
Other 3
Net gain on disposals 119 157
Net sale proceeds 537 384
Net cash and cash equivalents disposed (4) (437)
Costs accrued 4 4
Deferred consideration (56)
Realised foreign exchange (13)
Net cash inflow/(outflow) from disposals and demerger(2) 468 (49)
(1)
2008 includes net assets of $79 million no longer consolidated following loss of control of a subsidiary.
(2)
2008 includes nil in relation to discontinued operations (2007: net cash outflow of $159 million).

Disposals of businesses in the year ended 31 December 2008

The disposal of Namakwa Sands was the only material disposal of a business in the year.

Namakwa Sands

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:

US$ million 2008
Tangible assets 296
Other non-current assets 4
Current assets 91
Current liabilities (15)
Non-current liabilities (84)
Net assets disposed 292
Cumulative translation differences recycled from reserves 1
Net gain on disposal 49
Net sale proceeds 342
Deferred consideration (19)
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.

Disposals and demerger of subsidiaries and associates in the year ended 31 December 2007

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.

Mondi

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.

Highveld Steel and Vanadium Corporation (Highveld)

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.

Tongaat-Hulett Group

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%).

AngloGold Ashanti

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%).

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