South African major
AngloGold regards the price of its shares as “very high” relative to those of other gold companies on the Johannesburg Securities Exchange, and intends to make them more affordable for retail investors by carrying out a 2-for-1 share split in late December, following the closing of the odd-lot offer on Dec. 24.
Following the share split, one ordinary share trading on the JSE will be equivalent to one American depositary share (ADS), which will continue to trade on the New York Stock Exchange, and five CHESS depository interests (CDIs), which which will continue to trade on the Australian Stock Exchange.
The share split, which should make it easier for U.S. investors to understand AngloGold’s per-share financial data, has yet to be approved by shareholders. They will meet to vote on the proposal at a general meeting in Johannesburg on Dec. 5.
Regarding the odd-lots, AngloGold is making an offer to shareholders owning fewer than 50 ordinary shares. Most of these shareholders are said to be in South Africa, having obtained their odd lots when AngloGold was formed in June 1998 through the consolidation of seven separate companies.
AngloGold is offering R493.32 per ordinary share, which is the volume-weighted average-traded price of AngloGold ordinary shares on the JSE over the 10 trading days ended Oct. 29.
On the flip side, shareholders with fewer than 50 shares will also be able to buy additional AngloGold ordinary shares at R468.65 apiece (that is, at a 5% discount) to increase their holdings to 50 ordinary shares.
The offer is open to all shareholders except holders of ADSs, shareholders who are U.S. citizens or residents, holders of CDIs, and holders of AngloGold shares in book entry form through the Euroclear France system under Euroclear France Securities Code 12969.
The odd-lot offer period started on Nov. 11 and will end on Dec. 20.
Be the first to comment on "AngloGold reaches out to retail crowd"