AngloGold Ashanti announced on September 15 that it would not pursue a proposed corporate restructuring, announced five days earlier, due to investor concerns about the size of the $2.1 billion equity capital raising needed for the restructuring to be implemented in accordance with regulatory and other requirements. The proposed restructuring would have created a London-listed entity to house the company’s international assets, while its South African assets would have remained at AngloGold Ashanti.
The company reported that investors had expressed broad support for the strategic logic of the restructuring. However, the $2.1 billion equity raising was an insuperable sticking point.
The company said 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.
“Reducing current high debt levels and improving overall financial flexibility remain priorities for AngloGold Ashanti, which will now intensify its focus on value creation opportunities deliverable withinits current structure,” the September 15 announcement said.
“The company 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,” the announcement added.
AngloGold Ashanti is currently structured into four operating regions: South Africa, Continental Africa, the Americas, and Australasia. In 2013, gold production attributable to the company from these regions was: South Africa, 1.30 million oz; Continental Africa, 1.46 million oz; the Americas, 1 million oz; and Australasia, 342,000 oz.