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26.04.2004 Business & Finance

AngloGold Ashanti now effective

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Accra, April 26, GNA - The new AngloGold-Ashanti will start trading on the international market from on Tuesday April 27, following the final approval of the merger by an Accra High Court last Friday, Company sources said on Monday.

The High Court held last Friday that the merger between Ghana's Ashanti Goldfields Company Limited and AngloGold Limited of South Africa was in the interest of both parties and that the merger process could proceed.

"A copy of the Court order confirming the scheme has been delivered to the Ghanaian Registrar of Companies on Monday, April 26 and the merger has now become effective," Mr Kwaku Owusu-Bempah, Coordinator of the Ashanti Team on the transaction, told the Ghana News Agency on Monday.

He said securities of the new company - AngloGold Ashanti - are expected to commence worldwide from April 27, 2004; however, listing on the Ghana Stock Exchange (GSE) would be on Wednesday May 5, 2004. AngloGold Ashanti would now become the world's number one gold producer.

Mr Owusu-Bempah said with the coming into force of the new company, Ashanti shares cease to exist and would be replaced with AngloGold Ashanti shares.

According to the terms of the merger, each Ashanti shareholder with about 100 shares would now hold 29 AngloGold Ashanti shares.

The new company would have a market capitalization of 11.5 billion dollars with production expected to reach 7.5 million ounces of gold a year, Mr Owusu-Bempah said, adding that its reserves would come to 82 million ounces and a gold resource of 257 million ounces.

The new Company would be operating 22 mines in eleven countries spanning Africa, North America, South America, Europe and Australia. The listing of the new Company on the GSE would make the Exchange the second largest capitalized in Africa after the Johannesburg Stock Exchange.

Mr Sam Jonah, Chief Executive Officer of Ashanti, who will be President of AngloGold Ashanti, following the merger, said the merger would boost gold mining in Africa.

"Today is a momentous day for gold mining in Africa and opens a new chapter in the history of Ashanti. It is interesting that this occurs on the tenth anniversary of the day Ashanti became a public listed company," said Mr Jonah. 26 April 04

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