AngloGold Ashanti will not to go ahead with a proposed restructuring and two-billion-dollar capital raise.
The company called off the proposed demerger after shareholders expressed concerns over the amount of equity capital that would need to be raised.
[contextly_sidebar id=”fqQApfRGatNUDo79k43Z5XAXlTUX34SD”]The proposed restructuring would have created a London-listed entity to house the company’s international assets with the South African assets remaining at AngloGold Ashanti.
The move will have also seen its operations in Ghana and all other countries except South Africa being managed by the new company.
But CEO of Anglogold Ashanti Srinivasan Venkatakrishnan says the company will not go ahead with the restructuring as planned.
‘a number of shareholders have expressed concerns about certain aspects of the proposed transactions, in particular the quantum of the equity capital raising needed to enable the restructuring to be implemented in accordance with regulatory and other requirements’.
The mining giant has asserted it will continue to evaluate all options to address debt levels and unlock value, taking into account the feedback from its shareholders and its business needs.
It will also reduce current high debt levels and improve overall financial flexibility which remain priorities for AngloGold Ashanti.
It adds that it will continue to aggressively identify and implement further operational efficiencies, reduce overhead structures and pursue other initiatives to improve underlying business performance. The company will also accelerate actions to strengthen its balance sheet including debt reduction, portfolio simplification and options to unlock value from its Colombian portfolio.
By: Vivian Kai Mensah/citifmonline.com/Ghana