AngloGold Ashanti To Restructure International Mining Operations - Quick Facts

(RTTNews) - AngloGold Ashanti Limited (AGD.L, AU) announced the company's Board has decided to explore the possibility of restructuring AngloGold Ashanti into simpler and more focused entities. Accordingly, the company has applied for, and has received, approval from the South African Reserve Bank to restructure its international mining operations under a new UK holding company, Newco. The Restructuring will be subject to approval of the shareholders.

Newco would hold AngloGold Ashanti's portfolio of gold production and exploration assets located outside South Africa. AngloGold Ashanti would continue to remain a South African domiciled business. AngloGold Ashanti intends to partially demerge 35% of Newco to its shareholders and would initially retain a 65% controlling interest. Upon implementation of the Restructuring, it is expected that both companies will change their names.

Srinivasan Venkatakrishnan will remain as CEO of AngloGold Ashanti and will continue to lead an executive team comprising incoming Chief Financial Officer, Christine Ramon, Chief Operating Officer Mike O'Hare and Italia Boninelli.

Newco will be led by CEO-designate Charles Carter, along with President and Chief Operating Officer Ron Largent, who will be joined on the executive team by Graham Ehm, Maria Sanz Perez and David Noko. A new CFO will be recruited for Newco in due course, the company said.

The Board of AngloGold Ashanti has concluded that current debt levels are too high and therefore an equity capital raising, in the form of a rights issue to shareholders, is being contemplated. AngloGold Ashanti has agreed that it will be debt free upon implementation of the Restructuring in order to comply with the conditions of the SARB approval. The company is potentially targeting gross proceeds from the contemplated rights issue in the order of approximately US$2.1 billion in order to be able to pursue the Restructuring.