AngloGold Ashanti latest company to separate SA assets

2014-09-10 10:50

Following Gold Fields and BHP Billiton, AngloGold Ashanti is separating its South African assets.

The Reserve Bank has approved the restructure of its gold and exploration operations outside South Africa under a new UK holding company, which will list on the London Stock Exchange.

AngloGold Ashanti will partially demerge 35% of the new company to its shareholders and initially retain a 65% controlling interest.

Its move follows similar moves by other mining houses, and essentially returns South African mining to South Africa.

AngloGold Ashanti said the separation would allow independent management teams to have their own strategies, improve productivity and operating costs and have flatter and more cost effective overhead structures.

“Separate listings would also allow each business to be more appropriately valued to reflect their individual investment cases and asset profiles, each with an independent balance sheet and associated access to capital in distinct markets.”

Both companies will change their names.

Chairman Sipho Pityana said: “In South Africa, we will create a standard bearer for the mining industry with a structure allowing it to chart an exciting growth trajectory while allowing investors to properly value its high quality, cash generative portfolio.”

CEO Srinivasan Venkatakrishnan will retain his position, while “Newco” will be headed by Charles Carter.

AngloGold Ashanti also announced a $2.1 billion rights issue to reduce debt – it has agreed that it will be debt free on implementation of the restructuring.

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