8th Apr 2025 16:29
(Alliance News) - Anglo American PLC said on Tuesday it will ask its shareholders to approve a plan to demerge its platinum subsidiary Anglo American Platinum Ltd at the end of next month.
The London-based diversified miner said a general meeting of its shareholders will be held immediately after the annual general meeting to be held on April 30.
If Anglo American shareholders give the Anglo American Platinum demerger the green light, Anglo American expects the demerger to be effective on May 31.
As a result of the proposed demerger, 51% of Anglo American Platinum will be distributed to Anglo American shareholders, who will each receive 110 Anglo American Platinum shares for every 1,075 Anglo American shares they hold.
Anglo American has already disposed of around 12% stake in Anglo American Platinum from its original 79% shareholding. It will retain a 19.9% interest following the demerger.
Anglo American and Anglo American Platinum expect the platinum producer to debut on the London Stock Exchange on June 2. It will remain primary listed on the Johannesburg Stock Exchange.
The demerger of Anglo American Platinum is part of Anglo American's plan to simplify its business. Anglo American also intends to "divest" or "demerge" De Beers, and had already sold its steelmaking coal business. It wants to focus mainly on copper and iron ore.
Anglo American Platinum's shareholders will vote on its plan to rename itself to Valterra Platinum Ltd at its annual general meeting on May 8.
The platinum producer has already reduced its board ahead of the demerger. Nolitha Fakude, Themba Mkhwanazi and Matt Daley have stepped down as non-executive directors.
"Anglo American Platinum is now set up to thrive independently and, with the exceptional management team in place, now is the right time to demerge the business and as a result allow our shareholders to participate directly in its success," Anglo American Chief Executive Officer Duncan Wanblad said.
Shares in Anglo American closed up 2.3% at 1,854.12 pence Tuesday in London. In Johannesburg, they were up 0.5% to ZAR463.98.
In Johannesburg, Anglo American Platinum closed up 3.7% at ZAR630.09 on Tuesday.
By Artwell Dlamini, Alliance News reporter
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