LNM raises partial offer for South African Iscor shares

LNM raises partial offer for South African Iscor shares

LNM Holdings N.V. has announced its offer to acquire up to 12.19% of Iscor's issued share capital at R30.00 per share. If the purchase is concluded, LNM will be holding 47% of the issued share capital of Iscor. Investec Bank Limited is appointed by the Iscor board of Directors as independent advisors to advise the minority shareholders on the merits of the offer. LNM currently owns a 34.81% o issued share capital of Iscor, the company which LNM undertook to invest minimum a $75 million in Iscor prior to end March 2003. This was agreed under the Business Assitance Agreement between LNM and Iscor, concluded on November 22, 2002. The Iscor / LNM association is considered successful as there has been a 266.6% gain in Iscor's share price since then LNM is entitled to earn 5% to 10% of Iscor's issued share capital over the next three years provided that the scheduled cost servings are achieved. Iscor states that the first audited assessment of the savings will occur in February 2003 with commensurate shares accruing six months later. LNM vice chairman Aditya Mittal expressed that with the increasing shareholding in the company, LNM is aiming to transfer better technology, enhance the purchasing and marketing co-ordination and further accelerate the South African listed Iscor to a world class producer with global access. Iscor is planning to hold an extraordinary general meeting of shareholders in January 2003, to vote on the offer.