AngloGold Ashanti is moving to replace advisers Goldman Sachs Group and UBS following an investor rebellion last month that forced it to scrap a $2.1 billion (R23bn) share sale, according to people familiar with the situation.
The world’s third-biggest gold producer was talking to potential new advisers after having to abandon the sale and asset split five days after it was announced, the people said.
The sources asked not to be identified because the talks were private.
UBS has been AngloGold’s sponsor on the JSE since its separation from Anglo American in 1998.
Investors including hedge fund billionaire John Paulson balked at AngloGold’s plan to split its international operations from its South African mines last month, saying an accompanying share sale was too dilutive to their holdings.
The company’s focus had shifted to getting cash from existing operations while studying asset sales, the chief executive officer, Srinivasan Venkatakrishnan, said after scrapping the sale.
Goldman Sachs was an underwriter and bookrunner with UBS on AngloGold’s $1.6bn share sale in 2008 and helped to sell stakes in the producer held by Anglo American in 2006 and 2007, according to company statements.
Goldman is also part of the miner’s banking syndicate.
AngloGold’s shares have fallen more than 6 percent on the JSE this year.
Paulson, whose firm Paulson & Co holds 6.6 percent of the company and had campaigned for the asset split, objected to the size of the share sale and had planned to vote against the proposal.
“The concept is good, but the execution, the way they are doing it with this massive dilutive equity offering, it’s value destructive,” Paulson said last month.
AngloGold, which has a market value of about $4.2bn, said it needed to raise the funds to lower debt, a large portion of which is guaranteed by its South African operations.
The plan had regulatory approval from the Reserve Bank.
Spokesmen for AngloGold and UBS declined to comment and a spokeswoman for Goldman Sachs did not return a phone call seeking comment.
AngloGold shares declined 2 percent to close at R113.78 in Johannesburg on Friday. – Bloomberg