AngloGold Ashanti shareholders on Friday overwhelmingly voted to move the primary listing of the group from the Johannesburg Stock Exchange (JSE) to the New York Stock Exchange (NYSE) as the company pursues the US’s deep financial markets.
The group, worth about R130-billion on the JSE indicated in May that it intends to move its primary listing to North America and headquarters to the United Kingdom.
The company, chaired by former Absa boss Maria Ramos, will retain a secondary listing on the JSE and also keep its listing in Ghana, where it has a big presence.
The move was not entirely unexpected as the company in 2020 disposed of its remaining South African operating assets. The company in May also delisted from the Australian Stock Exchange.
AngloGold said that more than 90% of its shareholders voted in favour of switching its primary listing from Johannesburg to the Big Apple.
The mining giant, founded by Ernest Oppenheimer a century ago, is looking to close the valuation gap between it and big gold mining houses in Canada and America, dominated by behemoths Barrick and Newmont Corporation respectively.
AngloGold said the JSE continued to be an important capital market and source of liquidity for the group, and it was a key priority for it to retain its listings in South Africa, as well as to continue providing key corporate functions from Johannesburg.
AngloGold CEO Alberto Calderon said: “We have been working on a number of fronts to unlock the significant potential that lies within – and beyond – our portfolio.
“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.”
The company, whose 99% of its workforce are now outside South Africa, has operations in Argentina, Australia, Brazil, Ghana, Guinea, the DRC, USA, Colombia and Tanzania.
It is believed the change of its headquarters from Johannesburg to London is aligned with the transformation of its asset base into a diversified global portfolio of high-quality producing assets and projects.
Ramos said: “This is a logical progression for AngloGold Ashanti, which is well aligned with the evolution of the business in recent years and will assist in unlocking value in a way that’s minimally disruptive for our stakeholders.
“This proposed corporate structure … will considerably enhance our position in the world’s largest capital markets, while keeping key functions in Johannesburg and a full inward listing on the JSE for our South African shareholders.”
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