Loading ...Author: Andre Janse van Vuuren (Bloomberg)
Posted: Monday , 15 Sep 2014
Johannesburg (Bloomberg) –
AngloGold Ashanti Ltd. (ANG) scrapped plans to raise $2.1 billion through the sale of shares and split the company after investors opposed the strategy announced by South Africa’s largest gold miner only last week.
“A number of shareholders have expressed concerns about some aspects of the proposed transactions, in particular the quantum of the equity capital raising,” the Johannesburg-based company said in a statement today. AngloGold will continue to look at options to cut debt and simplify its portfolio, it said.
Billionaire investor John Paulson, whose hedge fund holds 6.6 percent of the company, objected to the share sale, saying it was “value destructive.” He had been in favor of a split between the South African and foreign operations of the group. The South African Reserve Bank only consented to the plan after AngloGold, which was to retain the assets it owned in the country, agreed to raise enough money to become debt-free, people with knowledge of the matter said last week.
The stock jumped 7 percent to 156.29 rand by 2:38 p.m. in Johannesburg, clawing back losses of 14 percent on Sept. 10 when the announcement was made.
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