Anglo American is set to demerge Anglo American Platinum (Amplats), which has operations in South Africa and Zimbabwe to optimise value for shareholders.
It said in a statement that its portfolio and structure are simpler without Amplats, adding that the Anglo American's portfolio will have a strong geographic balance and less complexity in future capital allocation.
“As a standalone business, Anglo American Platinum will be best positioned to set its priorities to deliver its full potential, with Anglo American's shareholders able to participate in full through the demerger,” it said.
Anglo said if it were to retain Amplats in its portfolio, it would limit the ability to have the full value of both businesses fully reflected, limiting the ability of both entities to achieve their full potential.
The diversified mining group recently received an all-share offer from the BHP Group.
Under the proposal, the takeover would be preceded by separate demergers by Anglo American of its entire shareholdings in Amplats and Kumba Iron Ore.
Anglo has since rejected BHP’s offer although it is beginning to implement some of the mining giant’s proposals.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
