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Are Anglovaal companies, near the end of a radical restructuring, about to recover some lost sparkle? The 1998 financial statements, the last under the old structure, suggest so.
THE separation of Anglovaal industrial and mining interests is almost complete. Anglovaal Industries (AVI) has been unbundled from Anglovaal Ltd under new holding company Anglovaal Industrial Holdings, giving the Hersov and Menell families temporary control (to be relinquished by 30 June 2001).
The second phase, which entails Anglovaal Ltd constituting Anglovaal Minerals (Avmin) as a wholly owned subsidiary, will take effect early next month as long as Avmin minorities agree - and there's no reason to believe they won't.
Market response has been mixed. Analysts have been enthusiastic about the new structure and renewed focus but have made no firm recommendations (which could lead to a significant rerating). They're waiting to see good numbers flow to the bottom line.
Anglovaal Ltd is trading at an uninspiring 8-9 p:e (when industrial interests are stripped out) compared with Avmin's 11,7 (it forms the vast majority of Anglovaal Ltd's assets). AVI is trading at a dismal 6.
The prospects for the mining interests - to be renamed Anglovaal Mining after Avmin minorities have been bought out - arguably present...