South Africa's AngloGold, which is in talks to buy Ghana-based
Ashanti Goldfields, is prepared to let Ghana's government retain
its golden share in Ashanti, sources close to the deal said.
However, under AngloGold's proposal the government would only be able to invoke the golden share for transactions involving the combined company's Ghanaian assets, one of the sources said in Ghana late on Tuesday.
Ghana's government has a 17% stake in Ashanti, including a golden share allowing it to veto the takeover, which, if successful, could create the world's biggest gold producer, with combined annual output of 7,6-million ounces.
Another source, also on condition of anonymity, confirmed the AngloGold proposal.
An AngloGold spokesperson said it was too early to comment.
The two companies announced their merger talks on May 16. Under the deal, Ashanti shareholders would receive 26 AngloGold shares for every 100 Ashanti shares held.
Ghanaian Mines Minister Cecilia Bannerman said on Tuesday the government wanted to retain the golden share. She said AngloGold had submitted two sets of documents to the government but would not give more details on their content.
"Our position is that we want the golden share to stay. We've received documents from AngloGold and we're looking at them, and we've set up a team which is advising us," she said.
"It appears the two mining companies have gone very far with their talks. They're serious," she said.
One source close to the deal said the government felt it was being rushed to endorse the takeover and preferred to consult with its advisers.
Both companies have said there was no guarantee that a deal would be struck.
Ghana's former administration, under then President Jerry Rawlings, played a big role in blocking Ashanti's planned merger with London-based platinum producer Lonmin in 1999.
Lonmin has said it is in talks with AngloGold over its 32% stake in Ashanti.
Ashanti has annual output of 1,6-million ounces and operates seven mines in Africa. Four of them are in Ghana and their combined output accounts for about 55% of Ashanti's total production.
Ashanti also has mines in Guinea and in Zimbabwe and jointly operates a mine in Tanzania with AngloGold.
The Johannesburg-based mining giant is currently the world's number two gold producer with about six million ounces in yearly output. If the deal goes through, the combined company would pip Denver-based Newmont, which has forecast output of between 7,1 and 7,3-million ounces for 2003, to the top slot.
However, it was also reported that South African gold miner Randgold Resources is interested in Ghana-based Ashanti Goldfields, but no formal offer has yet been made, an Ashanti source said.
"We are aware that Randgold is interested in Ashanti, but we have yet to receive any documents or an official offer," the source said, on condition of anonymity.
The source said Randgold executives were expected in Ghana this week to make a presentation to the Ghanaian government, which holds a 17% stake in Ashanti, including a golden share allowing it to veto takeovers.
Ghanaian Mines Minister Cecilia Bannerman told Reuters she was aware of Randgold's interest.
"I've been told; it's been indicated to me that such an interest has been made. But I am yet to be furnished formally with their proposal document," she said.
A spokesperson for Randgold declined to comment on the reported interest.
"Randgold Resources has frequently said that it is continually evaluating all significant growth opportunities in the gold industry, but it does not disclose details of these investigations or comment on market speculation about industry developments," she said.
Meanwhile, London-listed platinum miner Lonmin said today talks to sell its 32% stake in Ghana-based Ashanti Goldfields to South Africa's AngloGold were continuing.
AngloGold said early this month it was in discussions to buy Ashanti for around $1,015-billion in shares. – Reuters.
However, under AngloGold's proposal the government would only be able to invoke the golden share for transactions involving the combined company's Ghanaian assets, one of the sources said in Ghana late on Tuesday.
Ghana's government has a 17% stake in Ashanti, including a golden share allowing it to veto the takeover, which, if successful, could create the world's biggest gold producer, with combined annual output of 7,6-million ounces.
Another source, also on condition of anonymity, confirmed the AngloGold proposal.
An AngloGold spokesperson said it was too early to comment.
The two companies announced their merger talks on May 16. Under the deal, Ashanti shareholders would receive 26 AngloGold shares for every 100 Ashanti shares held.
Ghanaian Mines Minister Cecilia Bannerman said on Tuesday the government wanted to retain the golden share. She said AngloGold had submitted two sets of documents to the government but would not give more details on their content.
"Our position is that we want the golden share to stay. We've received documents from AngloGold and we're looking at them, and we've set up a team which is advising us," she said.
"It appears the two mining companies have gone very far with their talks. They're serious," she said.
One source close to the deal said the government felt it was being rushed to endorse the takeover and preferred to consult with its advisers.
Both companies have said there was no guarantee that a deal would be struck.
Ghana's former administration, under then President Jerry Rawlings, played a big role in blocking Ashanti's planned merger with London-based platinum producer Lonmin in 1999.
Lonmin has said it is in talks with AngloGold over its 32% stake in Ashanti.
Ashanti has annual output of 1,6-million ounces and operates seven mines in Africa. Four of them are in Ghana and their combined output accounts for about 55% of Ashanti's total production.
Ashanti also has mines in Guinea and in Zimbabwe and jointly operates a mine in Tanzania with AngloGold.
The Johannesburg-based mining giant is currently the world's number two gold producer with about six million ounces in yearly output. If the deal goes through, the combined company would pip Denver-based Newmont, which has forecast output of between 7,1 and 7,3-million ounces for 2003, to the top slot.
However, it was also reported that South African gold miner Randgold Resources is interested in Ghana-based Ashanti Goldfields, but no formal offer has yet been made, an Ashanti source said.
"We are aware that Randgold is interested in Ashanti, but we have yet to receive any documents or an official offer," the source said, on condition of anonymity.
The source said Randgold executives were expected in Ghana this week to make a presentation to the Ghanaian government, which holds a 17% stake in Ashanti, including a golden share allowing it to veto takeovers.
Ghanaian Mines Minister Cecilia Bannerman told Reuters she was aware of Randgold's interest.
"I've been told; it's been indicated to me that such an interest has been made. But I am yet to be furnished formally with their proposal document," she said.
A spokesperson for Randgold declined to comment on the reported interest.
"Randgold Resources has frequently said that it is continually evaluating all significant growth opportunities in the gold industry, but it does not disclose details of these investigations or comment on market speculation about industry developments," she said.
Meanwhile, London-listed platinum miner Lonmin said today talks to sell its 32% stake in Ghana-based Ashanti Goldfields to South Africa's AngloGold were continuing.
AngloGold said early this month it was in discussions to buy Ashanti for around $1,015-billion in shares. – Reuters.
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Edited by: laurian clemence
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