Merger to create world mining giant - RandGold

Accra, Aug. 20, GNA - The management of RandGold Resources, an African mining company, on Wednesday said the desire to create a unique African world mining giant as well as strengthen existing bonds of South-South co-operation are the major motivations for its merger bid for Ashanti Goldfields.

Dr Mark Bristow, Chief Executive Officer of RandGold, told a media briefing in Accra that the company's decision to put in a bid stems from the conviction that it has a credible alternative for Ghanaians to ensure shareholder value as well as a good return on investment.

This will be achieved through a combination of leadership and experience gained in its operation in various parts of the continent. Randgold, early this month put in a rival bid of 1.4 billion dollars for Ashanti as against Anglo Gold's one billion dollars.

The Ghanaian Government, which holds 16.9 per cent of Ashanti, has on receipt of the proposals appointed a consortium led by Societe Generale as advisers to assist in arriving at a decision on the future of Ashanti Goldfields Limited. Dr. Bristow said RandGold is capable of meeting requirements of the merger, adding that through combinations of various options, Ashanti could become a mining flagship in the world.

He said the company is working around the clock to complete work on the due diligence it is undertaking on the operations of Ashanti soon. On the issue of government's golden share, Dr Bristow said the company would not allow the issue of the "Golden Share" to detract it from the main goal of a merger with Ashanti Goldfields.

The government retains a "Golden Share" that allows it to veto major decisions involving the operations of the company. RandGold Resources was incorporated in the Channel Islands in 1995 and is listed on the London and Nasdaq Exchanges.