Chilean Court Backs Codelco, Freezes Anglo Stake

A Chilean court on Tuesday issued an order to prevent global miner Anglo American from selling its remaining 75.5% stake in the Anglo Sur copper mining complex, following a controversial sale to Japan’s Mitsubishi. Anglo struck a $5.39bn deal last week to sell a 24.5% stake to Mitsubishi in an attempt to sidestep an option to sell a full 49% share to state-owned Codelco at a cheaper price in January 2012. The sale to Mitsubishi represents a multiple of 18.1x 2010 Ebitda, far higher than the 10.2x 2010 Ebitda multiple Anglo would realize if it sold a 49% stake to Codeco for $6bn, as stipulated in the option. Codelco filed an injunction following last week’s deal with Mitsubishi, “to stop Anglo’s threat of selling additional shares”, says a Codelco spokesman. Officials at Anglo American could not be immediately reached for comment. Codelco doesn’t question the sale to Mitsubishi, the spokesman adds, but it still expects Anglo to sell it a 49% stake as stipulated. According to the option, Codelco can buy a 49% stake as long as Anglo still holds a 100% in the venture, otherwise it must buy less. Codelco argues, however, that Anglo had already received notice of its intentions to buy the 49% stake and as such it must still sell that piece of the business next year.