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Marking its further divestment from the country in which it was founded, AngloGold Ashanti has announced a plan to shift its corporate domicile and primary listing away from South Africa.
Having disposed of its remaining South African operating assets in 2020, the miner said it has undertaken a comprehensive review of its domicile and listing structure and concluded that the most appropriate corporate structure for the group is a UK corporate domicile with a US primary listing on the New York Stock Exchange.
The company said it has a long standing and growing presence in the US and no longer has operating assets in South Africa.
But it will hold secondary listings on the Johannesburg Stock Exchange and A2X Markets in South Africa and on the Ghana Stock Exchange.
Alberto Calderon, AngloGold Ashanti’s CEO, says 40 percent of the group’s shareholders are still South African so this is a “fit-for-purpose structure”.
The shift out of South Africa is subject to shareholder approval, but is expected to conclude in September this year.
“This is a logical progression for AngloGold Ashanti, which is well aligned with the evolution of the business in recent years and will assist in unlocking value in a way that’s minimally disruptive for our stakeholders,” said Maria Ramos, AngloGold Ashanti’s Chairperson.
“This proposed corporate structure … will considerably enhance our position in the world’s largest capital markets, while keeping key functions in Johannesburg and a full inward listing on the JSE for our South African shareholders.”
A primary listing in the US is expected to give the company better access to the world’s deepest pools of capital, It may also improve share trading liquidity. It is also expected, to boost its share price – as its valuation will be compared with the group’s more liquid and higher valued North American peers.
A corporate domicile in the UK uses a “well-proven, low-risk and attractive jurisdiction” for the group and minimises incremental costs for shareholders, AngloGold Ashanti said. – Bloomberg
“The broader investment appeal and regulatory environment is expected to enhance strategic and financing flexibility,” the group said.
A number of inter-conditional steps will be taken to implement the corporate restructuring.
Alberto Calderon, AngloGold Ashanti’s CEO said: “We have been working on a number of fronts to unlock the significant potential that lies within – and beyond – our portfolio.
The changes announced today will complement the work already underway to reduce our cost of capital, enhance our cost competitiveness versus our peers and optimise our portfolio by providing improved access to the world’s largest capital markets and pool of gold investors.”
AngloGold Ashanti was formed in April 2004 following the business combination of AngloGold Limited with Ashanti Goldfields Company Limited.
AngloGold was established in 1998, born mainly out of Anglo American’s South African gold and uranium interests in South Africa.
AngloGold was a forerunner in the establishment of black economic empowerment in the industry through a series of transactions with African Rainbow Minerals, to create what is now one of the country’s most successful black-owned mining companies.
The company was also the first to offer HIV treatment and anti-retroviral therapy to employees.
AngloGold’s share price has almost doubled in the past year. News24
Peter Tanyanyiwa
Online Reporter