Anglo American PLC said on Wednesday it has raised R 7.2 billion, around £308.0 million, after an accelerated bookbuild share offering of its subsidiary Anglo American Platinum Ltd.

The diversified miner sold 13.9 million shares of Anglo American Platinum, representing about 5.3% of its total issued shares, at R 515.00 each.

It said Anglo American Platinum is not a party to the placing and will not receive any proceeds.

Settlement of the placing shares is expected to occur on or about Monday next week, the company said.

Anglo American said the placing sought to counter ‘flowback’ after demerging Anglo American Platinum.

The placing comes after Anglo American in May unveiled its new strategic plan that will see it ‘demerge’ Anglo American Platinum and ‘divest’ or ‘demerge’ De Beers. It also wanted to divest its steelmaking coal business.

Anglo American has said it intends to concentrate on copper and iron ore as part of its new strategy, which was unveiled after rival BHP Group Ltd launched a bid to take over Anglo American. BHP later abandoned its bid.

The company said the placing is intended to broaden the free float of Anglo American Platinum, reduce the number of shares distributed to Anglo American shareholders upon demerger and reduce flowback following the demerger. The placing will also raise proceeds for Anglo American.

Flowback happens when foreign investors sell shares in the company.

Shares in Anglo American Platinum fell 7.7% to R 526.77 on Wednesday morning in Johannesburg. In London, Anglo American stock were up 1.0% to 2,029.00 pence, while they rose 1.7% to R 474.80 in Johannesburg.

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