AngloGold Ashanti to offer shares for Moto Mines acquisition

AngloGold Ashanti Ltd., Africa’s largest producer of the metal, plans to sell about 7.8 million new shares to fund the acquisition of an indirect 50 percent stake in Moto Goldmines Ltd.

AngloGold and Randgold Resources Ltd. said on July 16 that they had offered $488 million in cash and stock for Moto to access gold reserves in the Democratic Republic of Congo.

UBS Investment Bank is acting as sole bookrunner for the offering, AngloGold said in a statement to Johannesburg’s stock exchange today.

AngloGold fell 5.70 rand, or 1.9 percent, to 298.05 rand in Johannesburg trading yesterday, valuing the company at 105.6 billion rand ($13.6 billion). The stock has gained 18 percent so far this year.

Source: Bloomberg