Anglo-Am zinc sale bringing in bidders

Anglo American is said to be nearing the sale of its $1bn zinc businesses, with a handful of rival miners preparing to submit binding bids later this month.
By The Newsroom
Published 8th Apr 2010, 13:23 BST
Updated 8th Apr 2010, 13:23 BST

Anglo, under pressure from investors after an abortive merger approach from rival Xstrata last year, is selling the mines in Ireland, South Africa and Namibia as part of a multi-billion dollar disposal and restructuring program.

Several of the world's biggest zinc miners, including Xstrata, its biggest shareholder Glencore, and Vedanta's Hindustan Zinc Ltd unit are likely to bid, people in London close to the deal said yesterday. Anglo is seeking to sell the business as a whole, they added.

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A Chinese bidder may also remain in the process, two of the people said, while one said Sweden's Boliden, which owns Europe's largest zinc mine, could also bid.

Analysts at BMO Capital Markets estimate the assets could fetch $1.1bn. A more bullish Panmure Gordon said the deal could be worth $1.5bn – or about 6.4 times 2009 earnings before interest, tax, depreciation and amortization.

Anglo spokesman James Wyatt-Tilby declined to comment in detail but said: "The process is advancing. There has been strong interest."

Boliden, Glencore and Xstrata declined to comment. Vedanta did not immediately respond to a request for comment.

Xstrata's top zinc executive told Dow Jones in New York last month the group was "looking at probably all assets" in the sell-off.

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