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.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


5 top leg exercises for men

Here’s our selection of the five best leg exercises that you can do in the comfort of your own home.


You won't want to miss...

WATCH: Pornhub is giving users free access to premium content this holidays
5 top leg exercises for men
10 best dressed men of 2017
How to open a beer bottle without an opener
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.