“There has been broad support for the strategic logic of the restructuring, but a number of shareholders have expressed concerns about certain aspects of the proposed transactions,” AngloGold said in a statement.
“[DATA ANG:AngloGold Ashanti] has, therefore, decided not to proceed with the restructuring and capital raising, as currently proposed.”
(READ MORE: Will AngloGold’s shareholders revolt?)
According to the company, some shareholders expressed concern in particular with the quantum of the equity capital raising needed to enable the restructuring to be implemented in accordance with regulatory and other requirements.
The London-listed entity was supposed to house the company’s international assets with the South African assets remaining at AngloGold Ashanti, thus creating two simpler and more focused entities.
(READ MORE: AngloGold set to restructure and raise capital)
“The company will continue to evaluate all options to address debt levels and unlock value, taking into account the feedback from its shareholders and its business needs,” added the gold mining company.
AngloGold says it has a world-class portfolio of assets, growth projects and an excellent track record of transforming its business to improve efficiency and competitiveness over the past two years.
The company says reducing current high debt levels and improving overall financial flexibility remain priorities, which will now intensify its focus on value creation opportunities deliverable within its current structure.
“The company will continue to aggressively identify and implement further operational efficiencies, reduce overhead structures and pursue other initiatives to improve underlying business performance.”
AngloGold also intends to accelerate actions to strengthen its balance sheet including debt reduction, portfolio simplification and options to unlock value from its Colombian portfolio.