South African miner AngloGold has agreed to buy Ghana-based rival Ashanti Goldfields for $1,09-billion in an all-share deal, it announced on Tuesday.
Lonmin, which owns 27,6% of Ashanti, has agreed to support the merger bid, which values Ashanti Goldfields at $8,36 per share.
The combined group will be known as AngloGold Ashanti Ltd and will trade as Ashanti AngloGold in Ghana. AngloGold said the offer represented a premium of about four percent on Ashanti’s closing price on the New York Stock Exchange on August 1.
The company added that the merger was expected to boost headline earnings per share from completion, excluding the effect of the companies’ positions in hedging derivatives. – Sapa-AFP