JSE-listed AngloGold Ashanti has announced that all of 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 about 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.

In turn, 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. In 2020, it completed the disposal of its remaining assets in South Africa and now has 99% of its employees based outside of the country.

The board of the new company comprises Alberto Calderon as CEO and Robert Hayes as director, with Maria Ramos as chairperson.

Ramos comments that the restructure is a logical progression for the group, which is well aligned with the evolution of the business in recent years. She believes the move will assist in unlocking value in a way that is minimally disruptive for shareholders.

Calderon says the company has been working hard on a number of fronts to unlock the potential that lies within and beyond its portfolio.

“The changes announced today will complement the work already underway to reduce our cost of capital, enhance our cost competitiveness compared with our peers and optimise our portfolio by providing improved access to the world’s largest capital markets and pool of gold investors,” he adds. 

The JSE continues to be an important capital market and source of liquidity for the group and it will continue providing key corporate functions from Johannesburg.