AngloGold Ashanti Plans Spin Off of International Assets

The Wall Street Journal reported that AngloGold Ashanti Ltd. (NYSE:AU) plans to raise $2.1 billion in a rights issue and then spin its international assets into a new company. The new entity, which is to be listed in London, is expected to be split off in the first half of next year.

As quoted in the market news:

AngloGold will retain a 65% stake in the new company, which will have 14 gold mines in the Americas, Africa and Australia that generated nearly $4 billion in revenue last year.

The company, likely to be included in London’s benchmark FTSE100 index, will have a market value of about $6 billion to $7 billion, according to its chief executive-designate, Charles Carter. It will have secondary listings in New York and Johannesburg.

The remaining AngloGold Ashanti, which will focus on South Africa, will retain its Johannesburg and New York listings.

The company plans to use the proceeds of the rights issue to pay off its net debt, as required by South African regulators for the restructuring.

Click here to read the full report from The Wall Street Journal.