AngloGold to issue shares to blacks

JOHANNESBURG – AngloGold Ashanti Ltd, the world’s third-biggest gold producer, said yesterday it planned to issue 5,24 million new shares, equal to 1,9 per cent of total shares, to distribute mainly to its black staff and to help a black investment company to buy a stake.

The deal, due to be implemented before the end of the year, seeks to meet government demands to include more of the black majority in the mainstream economy after being excluded during apartheid. Under the Bokamoso employee share scheme, AngloGold will issue 3,84 million shares, about 1,4 per cent of the firm’s shares.More than 30 000 employees will each receive 30 free shares and 90 loan shares, a new class of shares, at a 10 per cent discount.Both types of shares will have full voting and dividend rights.Shares will be distributed to Bokamoso’s employee share ownership programme (ESOP) in five equal tranches over five years starting on the third anniversary of the launch.”We lay praise to the breakthrough between organised labour and AngloGold Ashanti on the conclusion of the ESOP which should see six per cent of South African assets committed to the development of this initiative,” Frans Baleni, secretary general of the National Union of Mineworkers, said in a statement.In the second deal, a black-owned investment company named Izingwe Holdings will acquire 1,4 million AngloGold shares, equal to around 0,5 per cent of the company’s share capital.Izingwe Chairman Sipho Pityana is due to join the board of AngloGold.Mining giant Anglo American Plc holds a 41,8 per cent stake in South Africa’s AngloGold after surrendering control by selling part of its 51 per cent holding in April.AngloGold shares rose 0,27 per cent to 292 rand by 0750 GMT, underperforming a 1,3 per cent gain in the gold mining index.Nampa-ReutersUnder the Bokamoso employee share scheme, AngloGold will issue 3,84 million shares, about 1,4 per cent of the firm’s shares.More than 30 000 employees will each receive 30 free shares and 90 loan shares, a new class of shares, at a 10 per cent discount.Both types of shares will have full voting and dividend rights.Shares will be distributed to Bokamoso’s employee share ownership programme (ESOP) in five equal tranches over five years starting on the third anniversary of the launch.”We lay praise to the breakthrough between organised labour and AngloGold Ashanti on the conclusion of the ESOP which should see six per cent of South African assets committed to the development of this initiative,” Frans Baleni, secretary general of the National Union of Mineworkers, said in a statement.In the second deal, a black-owned investment company named Izingwe Holdings will acquire 1,4 million AngloGold shares, equal to around 0,5 per cent of the company’s share capital.Izingwe Chairman Sipho Pityana is due to join the board of AngloGold.Mining giant Anglo American Plc holds a 41,8 per cent stake in South Africa’s AngloGold after surrendering control by selling part of its 51 per cent holding in April.AngloGold shares rose 0,27 per cent to 292 rand by 0750 GMT, underperforming a 1,3 per cent gain in the gold mining index.Nampa-Reuters