Anglo American sells remaining stake in AngloGold Ashanti

Anglo American (AAUK-Q, AAL-l) no longer owns any shares in AngloGold Ashanti (AU-N, AGD-l).

The diversified mining giant sold its remaining 11.3% shareholding (or 39.9 million shares) in AngloGold Ashanti for US$32 per share in cash to investment funds managed by New York-based Paulson & Co.

“We believe AngloGold Ashanti is one of the best managed and most undervalued of the major global gold mining companies,” Paulson & Co. said in an email. “We look forward to the implementation of their global expansion strategy.”

Paulson & Co., an employee-owned hedge fund sponsor, primarily provides its services to pooled investment vehicles.

The US$1.28 billion proceeds from the sale of its remaining stake in AngloGold Ashanti will be used for general corporate purposes and is part of Anglo American’s plans to shed non-core assets.

Earlier this month Anglo American announced it planned to cut 19,000 jobs or about 10% of its global workforce this year due to trimmed production plans and rescheduled projects.

Anglo American operates in 45 countries across Africa, Europe, South and North America, Australia and Asia.

Like most others in the business, Anglo American is scrambling to cut costs and stay afloat in a sea of companies that are being dragged down by the global financial crisis and sinking commodity prices.

In December, the London-headquartered company reported that its capital expenditure plans for 2009 would be scaled back by about 50% to US$4.5 billion due to the downturn and that it would suspend its 2008 final dividend to conserve cash. (Dividends for 2008 totaled US44¢ per share, down from US$1.24 per share in 2007.) Anglo American said it was also suspending its US$4-billion share buyback program unveiled in August 2007.

The company hopes to achieve US$2 billion through cost saving and efficiency initiatives by 2011.

Paulson & Co was set up in July 1994. In January 2008 it retained Alan Greenspan, former chairman of the U.S. Federal Reserve, as a member of its advisory board.

At presstime in New York, AngloGold Ashanti was trading at US$33.44 per share. The company has a 52-week trading range of US$13.39-$40.91.

Anglo American was trading at US$7.89 per share and has a 52-week trading range of US$6.21-$36.37 per share.