UPDATE: AngloGold To Raise $284 Million To Fund Moto Acquisition
01 September 2009 - 6:50PM
Dow Jones News
AngloGold Ashanti Ltd. (AU), the world's third-largest producer
of the precious metal, Tuesday said it expects to raise about $284
million through an offering of new shares to fund the planned
acquisition of a 50% stake in Moto Goldmines Ltd. (MGL.T).
The Johannesburg-based company said some 7.62 million shares
will be offered, priced at 288.32 rand an ordinary share and $37.25
an American depositary share, which will represent ordinary
shares.
The price represents a discount of roughly 3% to the closing
price on the New York Stock Exchange Monday and AngloGold said the
offering is scheduled to close Sept. 8. UBS is acting as sole
bookrunner.
AngloGold and Africa-focused gold producer Randgold Resources
Ltd. (GOLD) in July joined forces to buy Moto, whose main asset is
a project under development in Congo.
Perth, Australia-based Moto last month accepted an offer from
Randgold that values it at about $500 million, topping a rival bid
from Vancouver-based Red Back Mining Inc. (RBI.T). Randgold, which
is focused on gold mines in west Africa, has separately agreed to
subsequently sell 50% of Moto to AngloGold for $244 million.
AngloGold said the net proceeds from the offering would fund the
purchase of the stake, including certain other liabilities and
expenses.
At 0808 GMT, AngloGold's shares were trading 2.5% lower at
290.61 rand, while Johannesburg's gold mining subindex was down
1.7%.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848;
robb.stewart@dowjones.com