AngloGold Ashanti Limited has announced that it has conducted a comprehensive review of its domicile and listing structure following the disposal of its remaining operating assets in South Africa.
According to the company, the review concluded that the most appropriate corporate structure for the AngloGold Ashanti Group is a United Kingdom (UK) corporate domicile with a United States (US) primary listing on the New York Stock Exchange and secondary listings on the Johannesburg Stock Exchange, A2X Markets and Ghana Stock Exchange.
The review considered a wide range of factors, including capital markets dynamics, relevant peer groups, sell-side research coverage, established corporate structures and an assessment of regulatory, legal, tax, human resources and execution considerations.
The company said the change in domicile and listing structure is in line with the transformation of its asset base into a diversified portfolio of high-quality producing assets and projects.
It added that the primary listing in the U.S. is expected to create enhanced access to the world’s deepest pools of capital, including the opportunity to improve share trading liquidity.
The primary listing is expected to eventually facilitate greater performance and valuation comparisons to North American peers, with closer proximity to North American institutional investors and analysts.
Meanwhile, the corporate domicile in the U.K. uses a low-risk and attractive jurisdiction that minimises incremental costs for shareholders.
AngloGold noted that it has also obtained the relevant approvals to implement the proposed transaction from the South African Reserve Bank in accordance with South African Exchange Control Regulations.
AngloGold Chairperson Maria Ramos said the proposed corporate structure will boost the company’s position in the world’s largest capital markets while keeping key functions for South African shareholders.
Meanwhile, AngloGold CEO Alberto Calderon said the recently announced changes will complement the company’s work to reduce its cost of capital and enhance its cost competitiveness against its peers.
