Anglogold becomes first S.African company on NYSE
03:34 p.m Aug 05, 1998 Eastern
NEW YORK (Reuters) - Anglogold Ltd. Wednesday became the first South
African company to be listed on the New York Stock Exchange, in a move
meant to lure Americans to invest in the world's biggest gold producer.
As an African lion named Arthur lounged on a counter overlooking bemused
traders on the trading floor below, Anglogold executives rang the
opening bell on the NYSE Wednesday morning.
''We were about six inches away from the lion, which was a very
uncomfortable experience,'' Anglogold Chief Executive Bobby Godsell said
at the exchange.
''Having a lion on the trading floor created some incredible excitement
inside and outside the exchange,'' said Godsell, who was joined by
director and union leader James Motlatsi at the exchange.
Anglogold executives hope that excitement will continue as they promote
their revamped gold company to U.S. investors and analysts.
The stock traded at $21.50 after opening at $21.25 as Wall Street
battled to recover from the market's steep decline Tuesday.
The listing is the latest step in a strategy to attract international
investors and the higher stock values enjoyed by mining companies in
North America.
South African gold mining companies have been penalized by offshore
investors for being costly, shareholder unfriendly operations.
Anglogold was created earlier this year by merging Anglo American Corp.
of South Africa Ltd.'s gold mining assets in South Africa and the
southern African region. The company produces about seven million ounces
of gold a year with reserves of 140 million ounces.
Anglogold has said the main objective of the listing is to improve the
group's profile rather than raise fresh cash. But Godsell did not rule
out going to the market in the future to finance an acquisition.
''We're not seeking to raise funds now, but if we have an acquisition
that can be funded by equity then we would look at it,'' Godsell said.
Anglogold has been in talks to buy two gold mines in the United States
and three operations in South America from sister company Minorco SA,
but sealing an agreement has taken longer than expected.
Copyright 1998 Reuters Limited. |
