​AngloGold backflips on demerger

AngloGold Ashanti has announced its decision to not split the company, only a week after announcing plans to spin out its non-African assets.

Last week the international miner stated that it would restructure its international mining operations – spinning out anything not located in South Africa – into a new UK Holdings company.

It was also planning on carrying out an enormous US$2.1 billion rights issue to pay down debt by redeeming its outstanding bonds.

Now AngloGold has announced plans to not go ahead with the planned restructuring and capital raising, stating that while “there has been broad support for the strategic logic of the restructuring a number of shareholders have expressed concerns about certain aspects of the proposed transactions, in particular the quantum of the equity capital raising needed to enable the restructuring to be implemented in accordance with regulatory and other requirements,” the miner said in a company statement.

Instead it will explore other options to drive down debt, it stated.

AngloGold went on say it “will now intensify its focus on value creation opportunities deliverable within its current structure”.

“The company will continue to aggressively identify and implement further operational efficiencies, reduce overhead structure, 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 its Colombian portfolio.”

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