Anglo American South Africa, a subsidiary of diversified miner Anglo American sold 13.94 million shares of Anglo American Platinum (Amplats) at a price of R515 ($28.82) a share to raise about $ 400 million.
The shares were raised in an accelerated bookbuild and form part of Anglo’s planned demerger of its majority stake in Amplats.
Anglo American South Africa now holds 73.3% of the issued ordinary shares in Amplats from 78.56% before the placing.
Anglo chief executive Duncan Wanblad said the diversified group is moving proactively to distribute some of its Amplats shares into the hands of a wider range of investors ahead of the planned demerger. “This is expected to increase share trading liquidity in the near term, as well as mitigate the impact of flowback following the demerger as a result of fewer Amplats shares being distributed to Anglo American's shareholders," he said.
"The proceeds from the placing will also reduce our net debt as we continue to implement our portfolio transformation to focus on copper, premium iron-ore and crop nutrients – and thereby drive sustainably attractive returns."
Mathew Nyaungwa, Editor in Chief, Rough&Polished
