AngloGold Ashanti announces primary listing will move to New York Stock Exchange

ANGLOGOLD Ashanti today unveiled a major corporate restructuring in which it will move the primary listing of its shares to New York from Johannesburg, and domicile the business in London. The Johannesburg corporate office will be retained.

Alberto Calderon, CEO of AngloGold Ashanti said a primary listing on the New York Stock Exchange would help improve his company’s liquidity and a rating of its shares. AngloGold estimates it currently trades at a 25% discount to rivals. A secondary listing would be maintained on the JSE.

“The changes announced today will complement the work already underway to reduce our cost of capital, enhance our cost competitiveness versus our peers and optimise our portfolio by providing improved access to the world’s largest capital markets and pool of gold investors,” Calderon said.

AngloGold has no assets in South Africa after selling Mponeng to Harmony Gold for $300m in 2020. Two years earlier it had sold Moab Khotsong, also to Harmony. The firm’s plans for its primary listing had been “a persistant question from shareholders after selling the assets,” Calderon said.

“A primary listing in the US is expected to create enhanced access to the world’s deepest pools of capital, including the opportunity to improve share trading liquidity,” the company said.

Trade in its ADR programme in New York generates two-thirds of daily liquidity even though US investors comprise 35% of the share register.

The transaction will cost AngloGold about $500m which is the amount of a 5% withholding tax that falls due as a result of creating the London domicile. Given there is a tax treaty with the UK, South African shareholders will not pay any withholding taxes; nor will the move impact the portion of offshore shares South African investors are allowed to hold.

But the restructure will inevitably reflect poorly on South Africa as an investment destination especially following events yesterday in which the US ambassador alleged the country had supplied Russia with arms.

Coupled with growing fears about the ability of Government to address power shortages in South Africa helped fuel selling in the rand which moved to R19 to the dollar – the first time since the Covid lockdown in 2020.

“This is not about South Africa,” said Calderon. “I can’t comment on internal politics, but we are proud of our heritage.”

In terms of the Johannesburg office whiche employs about 280 people, AngloGold said there would be no impact on jobs; nor were any local board changes planned as a result of the restructure. The company employs about 30,000 people globally.

AngloGold previously investigated a change in primary listing and domicile while under the leadership of former CEO Kelvin Dushnisky who said in 2018. The speculation drew the ire of the South African government which threatened to sanction the company.

AngloGold said the South African Reserve Bank had given its approval to restructure. During discussions with the South African authorities it was acknowleged “there is a time to invest and a time to disinvest”.

However, Calderon declined to comment on the view of the South African government-owned Public Investment Corporation which owns 15.7% of AngloGold to the restructure. “We have engaged with a significant part of our shareholders,” he said.

Shareholders would be required to vote on the proposal. “A supermajority of 75% is required,” said Calderon. It was envisaged the transaction would be completed by about September.

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