JSE-listed AngloGold Ashanti has announced that all the reorganisation conditions that were outstanding have now been fulfilled or waived, where permitted.
A review of the organisation in 2020 concluded that the most appropriate corporate structure for AngloGold would be a UK corporate domicile with a US primary listing on the NYSE and secondary listings on the JSE and A2X Markets, in South Africa, as well as on the Ghana Stock Exchange.
These changes are in line with the transformation of the group’s asset base into a diversified global portfolio of high-quality producing assets and projects.
AngloGold has a long-standing and growing presence in the US and no longer has operating assets in South Africa.
The group sought to reduce its operational risk, strengthen its balance sheet, improve profitability, increase the size and quality of its mineral inventory and invest in creating attractive pathways to growth.
The implementation of the reorganisation will result in a newly created company owning all of AngloGold’s existing assets, to become the ultimate parent company of the group with the same shareholders.
This UK-incorporated company will be called AngloGold Ashanti plc instead of AngloGold Ashanti Limited.
Effectively, this move will delist the AngloGold ordinary shares from the exchanges on or around September 27, with the new shares listing happening a day or two before.
A primary listing in the US is expected to create enhanced access to the world’s deepest pools of capital, including the opportunity to improve share trading liquidity.
A corporate domicile in the UK uses a well-proven and attractive jurisdiction for the AGA group and minimises incremental costs for shareholders.
The broader investment appeal and regulatory environment is expected to enhance strategic and financial flexibility for the company.
This while South African shareholders are still able to hold AngloGold Ashanti plc shares on the South African branch register of the group without using their foreign investment allowance and continue to trade their shares on the South African capital markets.
At the time of AngloGold’s formation in 1998, the vast majority of its assets and team were located in South Africa; however, over time, the company has diversified geographically.