AngloGold raises $1.6 billion through equity and bond sales

Africa's largest gold miner AngloGold Ashanti has raised around $1.58 billion through placement of equity shares and convertible bonds exercising the over-allotment option, as part of the company's strategy to get rid of its gold hedging position and to fund its growth plans.

AngloGold Ashanti issued a total of 18.14 million equity shares, including over-allotment of 2.37 million shares, at a price of around $43.50 per American Depository Share (ADS) and 308.37 rand per ordinary share. Total equity proceeds work out to $789 million.

The offer is approximately 5 per cent of the ordinary share capital of AngloGold Ashanti in terms of the shareholder's May 2010 resolution.

AngloGold Ashanti Holdings Finance Plc, a wholly owned subsidiary of AngloGold Ashanti, also raised an equal amount through the issue of 6-per cent mandatory convertible bonds due 2013, including the over-allotment option exercised by the underwriters.
 
The bonds are initially convertible to 18.14 million ADSs subject to shareholders approval.

The initial price of conversion of the bonds is set at approximately $43.50, being the public offer price of the equity and the threshold appreciation price has been set at approximately $54.375, representing a 25-per cent premium to the initial price.

Johannesburg-headquartered AngloGold is one of the world's leading gold producers with 21 operations on 4 continents and a number of exploration programmes in both the established and new gold-producing regions of the world.