26th Nov 2024 16:50
(Alliance News) - Anglo American PLC on Tuesday launched another accelerated bookbuild share offering of its subsidiary Anglo American Platinum Ltd, as part of its broader demerger plan.
The diversified miner intends to place about 16 million shares of Anglo American Platinum to qualifying institutional investors only.
Shares in Anglo American Platinum ended up 0.6% to ZAR599.45 on Tuesday in Johannesburg, handing it a market capitalisation of ZAR165.51 billion.
Anglo American said the demerger of Anglo American Platinum remains on track for completion by the middle of 2025.
As part of this process, work is ongoing to list Anglo American Platinum on the London Stock Exchange. it will maintain primary listing on the Johannesburg Stock Exchange.
Anglo American also said it plans to sell about an additional 6% of Anglo American Platinum as part of an effort to demerge its platinum unit.
Anglo announced in May it sought to divest some assets including Anglo American Platinum and De Beers. On Monday, Anglo American agreed to sell the remainder of its coal business in Australia for USD3.78 billion.
After completing of the placing and in combination placing completed in September, the free float of Anglo American Platinum will have been increased by more than 50%.
In September, Anglo American raised ZAR7.2 billion, around GBP308.0 million, after an accelerated bookbuild share offering of Anglo American Platinum.
Anglo American said on Tuesday it will further reduce the number of shares distributed through the demerger and so mitigate the risks of market disruption from subsequent "flowback", which happens when foreign investors sell shares in the domestic company.
In London, Anglo American stock was down 0.4% to 2,380.00 pence, while they closed 0.1% lower at ZAR540.86 in Johannesburg.
By Artwell Dlamini, Alliance News reporter
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