Citi Business News has gathered ANGLOGOLD ASHANTI has begun moves to set up a new company to run its operations in Ghana.
The new company will also run the mining giant’s other operations across the world except that of South Africa.
The move which is subject to approval from regulators and shareholders is expected to be executed next year.
The new company when established will be listed on the London Stock Exchange.
It will also see an inward listing on the Johannesburg Stock Exchange and a listing of American Depository Receipts (ADR) on the New York Stock Exchange.
Under the new split Anglogold proper will have a 65% stake in the new company while existing shareholders will receive the remaining 35%.
The split when approved by shareholders and all regulators involved will see ANGLOGOLD ASHANTI’s name and look switched to another in Ghana and all other operations it has across the world with the exception of that of South Africa.
However Citi Business News has learnt the name and look of the new company is yet to be decided on.
Citi Business News has also learnt top officials of the company including the CEO, are currently on a road show to convince shareholders to buy into the new plan.
Anglogold Ashanti currently has a huge debt portfolio of over three billion dollars.
The restructuring of the company will lead to a rights issue which will see shareholders of the company inject some capital.
Anglogold Ashanti like many other mining companies has over the past three years recorded some loses due to a plunge in global gold prices among others.
The drop in revenue as well as some operational challenges this year pushed the mining giant to restructure its Obuasi mine in Ghana.
Executive Vice President Sustainability of the mining giant David Noko explains to Citi Business News that the proposed restructuring of Obuasi will continue under the new company that will be formed.
Meanwhile under the new split no major positions will be affected, however two board members of Anglogold would resign to join the new company when established.
By: Vivian Kai Mensah/citifmonline.com/Ghana
