The restructuring will be subject to approval of the shareholders of AngloGold Ashanti.
The company is potentially targeting gross proceeds from the contemplated rights issue in the order of approximately 2.1 billion US dollars in order to be able to pursue the restructuring.
The proceeds would be used predominantly to repay existing debt by initially redeeming 35 per cent of the aggregate principal amount outstanding of the company’s 2020 8.5 per cent bonds.
The deal will see AngloGold restructuring under a new UK holding company, Newco.
Newco intends to seek a premium listing on the London Stock Exchange, an inward listing on the JSE and a listing of American Depositary Receipts on the New York Stock Exchange.
Under the proposed restructuring, Newco would hold AngloGold Ashanti’s portfolio of gold production and exploration assets located outside South Africa.
However, [DATA ANG:AngloGold Ashanti Limited]would continue to remain a South African domiciled business that would focus on maximizing the value of its current portfolio and, over time, the intention is that it would consider developing a multi-commodity growth strategy in South Africa and beyond.
“AngloGold Ashanti believes that separation into separately-listed vehicles would allow independent management teams to execute distinct strategies in order for each entity to compete as effectively as possible in the context of the current industry and macro-economic environment.”
“Simplified portfolios would allow each management team to accelerate initiatives to improve productivity and operating costs and to realise the potential where appropriate of their growth opportunities whilst also allowing for flatter and more cost effective overhead structures.”