Will AngloGold’s shareholders revolt? - CNBC Africa

Will AngloGold’s shareholders revolt?


by Farhaanah Mahomed 0

AngloGold Ashanti may face a possible revolt from its shareholders over a 2.1 billion US dollar rights issue and asset split. PHOTO: Getty

According to Times Live, shareholders of the global gold mining company have added their voices after billionaire hedge fund manager, John Paulson said that he would not vote in favour of the ‘value- destructive’ transaction which includes AngloGold’s second rights offering in six years.

Paulson’s fund is one of the biggest shareholders in AngloGold at 6.6 per cent and has been pushing the company to split into a South African and non-South African business which could potentially boost AngloGold’s share price by 68 per cent

The split would consist of AngloGold Ashanti retaining all South African assets while Newco, a new entity, would hold all other international assets.

[DATA ANG:AngloGold] would however own 65 per cent of Newco, listed in Johannesburg and London and have debt of 1.2 billion US dollars.

On the other hand, the Reserve Bank is demanding that AngloGold be left debt free before given the go ahead for the split.