| Wed 26 Oct 2005, 9:15 | | ANGLOGOLD ASHANTI welcomes Anglo Americans intenti |
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ANGLOGOLD ASHANTI welcomes Anglo American"s intention to reduce its
shareholding, while remaining a significant shareholder in AngloGold Ashanti
AngloGold Ashanti Limited
Incorporated in the Republic of South Africa
Registration Number: 1944/017354/06)
ISIN Number: ZAE000043485
JSE Share Code: ANG
("AngloGold Ashanti/Company")
AngloGold Ashanti welcomes Anglo American"s intention to reduce its
shareholding, while remaining a significant shareholder in AngloGold Ashanti
JOHANNESBURG --- 26 October 2005 --- AngloGold Ashanti welcomes the
announcement by Anglo American, namely that it intends to provide AngloGold
Ashanti with greater flexibility to pursue its strategy by deciding to reduce
its shareholding in the company, whilst still intending to remain a significant
shareholder in the medium term.
AngloGold Ashanti was formed in 1998 through the consolidation of Anglo
American"s gold interests, at the time held through eight separately listed
South African companies. AngloGold Ashanti started from an almost exclusively
South African production base and has been transformed through a range of asset
acquiring transactions, the most recent of which was its merger with Ashanti
Goldfields. AngloGold Ashanti is now a leading diversified gold major currently
operating 20 gold mines in ten countries.
Since 1998, in the context of AngloGold Ashanti"s acquisition strategy, Anglo
American has had to buy shares in the market, in order to keep its equity stake
in AngloGold Ashanti at above the 50% level and thereby maintain AngloGold
Ashanti as a subsidiary. AngloGold Ashanti understands that there are two
related issues underlying Anglo American"s intention to reduce its holding in
AngloGold Ashanti.
First, AngloGold Ashanti is focused on a strategy that aims to maintain and
if possible increase the company"s share of profitable gold ounces, in light of
current and prospective market conditions. Furthermore, given the nature of the
gold mining industry, corporate transactions and acquisitions of assets
typically use the currency of shares rather than cash. To maintain its
investment at the level of a subsidiary (i.e. above 50%) Anglo American would
have had to increase its level of investment at each time such a transaction
takes place.
Secondly, the market values gold mining companies and diversified mining
companies very differently. One implication of this is the ongoing possibility
that the value of Anglo American"s holding in AngloGold Ashanti is not fully
reflected in Anglo American"s own valuation and share price. As the size of
Anglo American"s investment in AngloGold Ashanti increases, so does the extent
of this potential value discrepancy.
Commenting on Anglo American"s announcement, CEO Bobby Godsell said "I am
delighted that Anglo American is supportive of our strategy and will remain a
significant shareholder in the medium term. We will now enjoy greater trading
liquidity, as a consequence of their intention to dilute or be diluted, which is
very important for us as a leading global gold company."
The CEO of AngloGold Ashanti will discuss today"s announcement in a
conference call with the media and market to be held today, Wednesday, 26
October 2005, at 17:30 pm (GMT +02:00; 11:30 EDT). In the same call the
AngloGold Ashanti management team will discuss the company"s third quarter
results, which will be released to the market prior to the call. This call will
replace the earnings calls originally scheduled for Thursday, 27 October 2005.
Conference call details are as follow; in all cases, please reference
AngloGold Ashanti. In South Africa, please dial (011) 535 3600 or (0800) 200
648. In North America, please dial (1800) 860 2442 or (412) 858 4600 and in the
UK, dial (0800) 917 7042 or 020 7107 0611. In Australia, please dial (1800) 350
100.
A replay will be available approximately two hours after the call ends
through 09 November. To access the replay in South Africa, please dial (011)
305 2030. In North America, please dial (1877) 344 7529 or (412) 317 0088 and in
the UK, dial (0808) 234 6771 or 020 7108 6233. In Australia, please dial (1800)
220 860 or +61 7 3018 0212. For all replays, please reference the ID code
2109#.
ends
JSE sponsors : UBS
Queries
Charles Carter
Tel +27 (0) 11 637 6385 Mobile +27 (0) 82 330 5373
E-mail cecarter@AngloGoldAshanti.com
Steve Lenahan
Tel +27 (0) 11 637 6248 Mobile +27 (0) 83 308 2200
E-mail slenahan@AngloGoldAshanti.com
Alan Fine
Tel +27 (0) 11 637 6383 Mobile +27 (0) 83 250 0757
E-mail afine@AngloGoldAshanti.com
In the U.K.:
Rachel Hirst - Hogarth Partnership
Tel +44 (0) 20 7357 9477 Mobile +44 (0)7767 323423
E-Mail rhirst@hogarthpr.co.uk
In the U.S.
Andrea Maxey
Tel +1 212 7507999 Mobile +1 646 549 8992
E-mail amaxey@AngloGoldAshanti.com
Frank Sommerfield - Sommerfield Communications
Tel +1 212 255 8386 Mobile +1 917 836 1971
E-mail frank@sommerfield.com
Disclaimer
Except for historical information contained herein, there are matters
discussed in this news release that are forward-looking statements. Such
statements are only predictions and actual events or results may differ
materially. For discussion of important factors including, but not limited to
development of the Company"s business the economic outlook in the gold mining
industry, expectations regarding gold prices and production, and other factors,
which could cause actual results to differ materially from such forward-looking
statements, refer to the Company"s annual report on the Form 20-F for the year
ended 31 December 2004 which is filed with the Securities and Exchange
Commission on 14 July 2005. This announcement does not constitute an offer of
any securities for sale.
Date: 26/10/2005 09:15:18 AM Produced by the JSE SENS Department
