8th Apr 2021 08:14
(Alliance News) - Anglo American PLC on Thursday announced the demerger of its South African thermal coal operations via the transfer to new holding company Thungela Resources Ltd.
The demerger comes as the global mining behemoth pursues a "responsible transition" away from thermal coal.
Anglo Chief Executive Mark Cutifani said: "We are confident that Thungela will be a responsible steward of our thermal coal assets in South Africa, benefiting from an experienced and diverse management team and board. While representing just a small proportion of Anglo American today, we are laying the foundation for South Africa's leading coal business, setting it up for success to deliver value for all its stakeholders.
"Looking forward, we believe the prospects for long-term value delivery are greatest as two standalone businesses, each with their own strategy and access to capital."
The demerger is subject to shareholder approval on May 5, with the demerger expected to come into effect on June 4.
"The proposed demerger recognises the diverse range of views held by Anglo American's shareholders in relation to thermal coal and therefore provides Anglo American's shareholders, including those with specified investment criteria, with the choice to act on such views and, following the implementation of the proposed demerger, to either retain, increase or decrease their interests in Thungela," Anglo said.
The proposal will also allow Thungela to attract new shareholders and to access new sources of capital as an independent company offering direct exposure to thermal coal, Anglo added.
Details of the listing of Thungela on the JSE and LSE will be announced later Thursday.
Anglo American shares were up 2.2% at ZAR611.70 each in Johannesburg on Thursday morning, and were up 2.5% at 3,062.50 pence each in London.
By Greg Roxburgh; [email protected]
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