Cabinet to present AngloGold-Ashanti merger package to Parliament

Accra, Oct. 29, GNA - Cabinet will soon present an AngloGold-Ashanti merger package to Parliament for consideration, following the government's approval of the South African mining giant's offer for the Ashanti Goldfields Company (AGC), Finance Minister Yaw Osafo-Mafo on Wednesday.

"As the rule demands, we (government) must go with a position to Parliament and now that we have taken a decision, we would be forwarding the entire package of our decision to Parliament," the Finance Minister commented in Accra after government's decision on the matter.

The government last night announced its decision to endorse earlier recommendations made by the AGC Board in favour of AngloGold's offer of 1.4 billion dollars, to end months of a bidding rivalry between AngloGold and the London listed Randgold resources, which put in a revised bid for 1.7 billion dollars.

Mr Osafo-Mafo said the government's approval of the Anglogold offer does not mark the finality of the process, adding that Parliament has the power to make changes.

"Parliament can say yes or no, or modify the whole package," he intimated. He said the law making body would also be required to provide legal and financial instruments relating to tax exemptions as part of the process. Mr Osafo-Mafo said in arriving at its decision, Cabinet considered "first and foremost" the long-term interest of Ghana as well as the AGC and its workers.

"We believe we have taken the right decision; the best option is Anglogold," he said, explaining that the company has the liquidity to inject in Ashanti to realize its potentials, thereby enhance the economic fortunes of the nation.

He said under the proposed Anglo-Ashanti merger, the government would still maintain its golden share control over the new company's operations in Ghana.

Besides, government would also have two representatives on the new company's Board, as against one representative that it has on the current AGC Board.

It is also proposed that Dr Sam Jonah, current Chief Executive Officer of AGC would be the President of the new company, which key industry players believe, would become the world's no.1 miner. Mr Osafo-Mafo said under the package, AngloGold would provide 3.5 million dollars for immediate face lifting of the Obuasi Government Hospital.

The company would also spent one per cent of its turnover on addressing the environmental problems of Obuasi and its surrounding communities, he said.