AngloGold reaches out to the retail crowd

South African major AngloGold (AU-N) is providing more details on its proposed share split as well as its offer to buy up odd lots of shares.

Characterizing its share price as being at “very high levels” relative to those of other gold companies on the Johannesburg Stock Exchange, AngloGold says that it wants to make its shares more affordable for retail investors by carrying out a 2-for-1 share split in late December, following the close of its odd-lot offer.

Following the share split, one ordinary share trading on the JSE will be equivalent to one American depositary share (ADS) — which will continue to trade on the New York Stock Exchange — or five CHESS Depository Interests (CDIs) — which will continue to trade on the Australian Stock Exchange.

Regarding the odd-lots, AngloGold is making an offer to shareholders owning less than 50 ordinary shares. The company says most of these shareholders are in South Africans who obtained their odd lots when AngloGold was formed in June 1998 through the consolidation of seven separate companies.

AngloGold is offering R493.32 per ordinary share — this being the volume-weighted average price of AngloGold ordinary shares on the JSE over the ten trading days ended Oct. 29.

On the flip side, shareholders with less than 50 shares will also be able to buy additional AngloGold ordinary shares at R468.65 apiece (i.e. a 5% discount) in order to increase their holdings to 50 ordinary shares.

The odd-lot offer is open to all shareholders except: holders of ADSs; shareholders who are United States citizens or who reside in the United States; holders of CDIs; and holders of AngloGold shares in book entry form through the Euroclear France system under Euroclear France Securities Code 12969.

The offer period started on Nov. 11 and will end on Dec. 20, 2002.