AngloGold Ashanti’s plans to raise $2.3 billion and create a London-listed entity to separate its international and South African assets have fallen through after its shareholders knocked back the proposal, leaving the gold miner with a high debt burden.
Last week, AngloGold announced plans to demerge 35 per cent of London-listed NewCo to its shareholders, retaining a 65 per cent interest and allowing Newco to hold the company’s portfolio of gold production and exploration assets outside of South Africa.
AngloGold would continue to remain a South African-housed business.
However, its shareholders raised concerns over the size of the proposed capital raising that would be needed to enable the company’s restructure, which left the proposal unapproved.
“AngloGold has, therefore, decided not to proceed with the restructuring and capital raising,” the company said in a statement.
“The company 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.”
AngloGold said it would prioritise reducing high debt levels and improving financial flexibility.
It’s share price fell by 1.6 per cent to $3.05 per share at 9:30am.
