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You are here: Home > 2004 > Ghanaian Parliament Approves Stability Agreement with AngloGold

Ghanaian Parliament Approves Stability Agreement with AngloGold

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Friday, February 20, 2004
The Ghanaian Parliament has announced its approval of the Stability Agreement (the "Agreement") between the Government of Ghana (the "Government") and AngloGold.

Following this approval, AngloGold and the Government have signed the Agreement, the terms of which remain unchanged from those announced by AngloGold on 12 December 2003. The Agreement has the effect of creating an enabling economic and fiscal environment for the recapitalisation and further development of Ashanti's Ghanaian assets after the merger of AngloGold and Ashanti (the "Merger").

The implementation of the Agreement remains subject to, among other things:
  • the approval by Ashanti shareholders of the scheme of arrangement (the "Scheme") under section 231 of the Ghana Companies Code (act 179) as amended, through which the Merger will be implemented;
  • the confirmation of the Scheme by the High Court of Ghana (the "High Court"); and
  • the issue of 2,658,000 AngloGold ordinary shares and the payment of US$5 million in cash by AngloGold to the Government upon the implementation of the Merger.
AngloGold also received the regulatory approvals of the Government that are required in connection with the Merger.

As soon as possible, Ashanti intends to file an application with the High Court to convene and set the date for the meeting at which Ashanti shareholders will consider and vote on the Scheme (the "Scheme Meeting") as well as the date when the High Court will, following the approval of Ashanti shareholders, hear the application to confirm the Scheme. Once the dates for the Scheme Meeting and the hearing to confirm the Scheme have been scheduled, the Scheme documents will be posted to Ashanti shareholders. Thereafter, having allowed the appropriate notice period, the Scheme Meeting will be held and, assuming the Scheme is approved by Ashanti shareholders at the Scheme Meeting, the High Court will hear the application to confirm the Scheme. AngloGold anticipates that the Scheme Meeting and the High Court hearing to confirm the Scheme will take place in early April and that the Merger will be implemented by the end of April.

Commenting on the Parliament's ratification of the Agreement, AngloGold CEO Bobby Godsell said: "We are delighted to have the support of the Parliament and Government of Ghana and we will now press ahead to complete the Merger as soon as possible."

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