Asked computershare on friday how much the rights issue would be for australian AGG CDI holders. Computershare quoted me 6.63 per share which is about 25% more than the correct price and they could not explain why.
I emailed AnglogoldAshanti HO in South Africa, got correct explanation. If you subscribe for the rights issue, you have to pay the 6.63 per share, which is currently about 25% in excess of the correct price. The relevant exchange rate to ZAR will be determined when the offer closes and a refund will be paid. This seems a bit dodgy to me, but they explain it because of potential volatility in the AUD/ZAR exchange rate so it makes sense. Sort of. I dunno why they could not put this information in their ASX announcement.
As from Monday AGG will be trading ex rights issue and could be quite cheap.
AGG Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held