Anglo American Sells Stake in Platinum Subsidiary Ahead of Planned Demerger
British mining group Anglo American has sold shares of Anglo American Platinum, valued at 9.6 billion South African rand (approximately 500 million euros), as part of preparations for a complete demerger of the South African platinum producer. The sale, announced on Wednesday, involved 17.5 million shares, representing 6.6% of Anglo American Platinum's issued capital, at a unit price of 548 rand per share. This price was an 8.6% discount compared to the closing price of 599.45 rand the day before.
The shares were sold by Anglo American's subsidiary, Anglo American South Africa Proprietary, through an order book procedure. Initially, Anglo American had announced plans to sell 16 million shares, representing roughly 6% of Anglo American Platinum's capital. Following the sale, Anglo American South Africa Proprietary retains a 66.7% ownership stake in Anglo American Platinum.
The decision to divest is part of a broader restructuring plan Anglo American presented in May while fending off a takeover attempt by rival mining company BHP. At that time, the group outlined its intentions to divest or spin off various divisions, including those related to steelmaking coal, platinum, nickel, and diamonds, to focus on its core businesses of copper, premium iron ore, and agricultural nutrients.
Anglo American has indicated that the demerger and listing of Anglo American Platinum on the London and Johannesburg stock exchanges is expected to be completed by mid-2025. The company's restructuring aims to sharpen its focus and streamline operations as it faces competitive pressures in the mining sector.
