South African miner AngloGold Ashanti (NYSE:AU) is to list in London as part of a corporate restructuring.
The company’s international mining operations will be housed in a new UK holding company, currently referred to as “Newco”, which will be listed on the London Stock Exchange.
The remainder of AngloGold Ashanti would continue to remain a South African domiciled business, listed on the Johannesburg stock exchange, which would focus on maximising the value of its current portfolio.
AngloGold Ashanti intends to partially demerge 35% of Newco to its shareholders and would initially retain a 65% controlling interest, the company revealed.
Chairman Sipho Pityana commented: "It has become increasingly clear that the two distinct parts of our portfolio require different strategies, focused management and should be appropriately capitalised to realise their full potential and unlock further value for shareholders.
“In South Africa, we will create a standard bearer for the mining industry with a structure allowing it to chart an exciting growth trajectory while allowing investors to properly value its high quality, cash generative portfolio.
“The Newco portfolio is expected to have a premium listing in London and will receive the management focus, resources, financial flexibility and structure required to realise the full potential from its portfolio of growth assets."