Anglo American has rejected the latest takeover bid by BHP Group Limited. The takeover bid has implications for Namibia because Anglo American owns De Beers, which is a partner with the government in Namdeb Holdings, Debmarine Namibia and the Namibia Diamond Trading Company.
Chamber of Mines of Namibia data, showed that Debmarine Namibia produced 1,7million carats in 2022, an increase of 52% from 2021, covering an area of 19,1 square kilometers. The increase in production was primarily driven by the introduction of the MV Benguela Gem. The new recovery vessel, the MV Benguela Gem, was completed ahead of schedule; commissioning and ramp-up to full production was better than planned which resulted in additional carats produced for the year.
Land production saw Namdeb’s production increased by 25% in 2022, as the operation achieved all of its production targets. The higher production target followed approval of the new business plan, which sees operations through to 2042. Production also introduced a 6th mining face which contributed to the higher output.
Stuart Chambers, Chairman of Anglo American, said the latest proposal from BHP again fails to recognise the value inherent in Anglo American.
He said Anglo American shareholders are well positioned to benefit from increasing demand from future enabling products while the increasing capital intensity to bring greenfield supply online makes proven assets with world class resource endowments ever more attractive.
“The Anglo American team is focused on delivering against its strategic priorities of operational excellence, portfolio simplification and growth and is set to accelerate delivery in order to unlock this inherent value,” he said.
Chambers said the BHP proposal also continues to have a highly unattractive structure. This leaves Anglo American, its shareholders and stakeholders disproportionately at risk from the substantial uncertainty and execution risk created by the proposed inter-conditional execution of two demergers and a takeover, he said.
The structure of the latest proposal is unchanged from the proposal previously rejected on 26 April 2024. This comprises an all-share offer for Anglo American by BHP, with a requirement for
Anglo American to complete two separate demergers of its entire shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders.
The Anglo board said it has considered the latest proposal with its advisers and concluded that it continues to significantly undervalue Anglo American and its future prospects.
The Anglo American Platinum Limited and Kumba Iron Ore Limited shareholdings, at current market value, are worth approximately US$15 billion and 34% of the proposed total consideration.
