Anglo American PLC said on Wednesday it has raised R 9.6 billion or about $527 million accelerated bookbuild share offering of its subsidiary Anglo American Platinum Ltd.
The diversified miner on Tuesday launched the placing of 17.5 million shares of Anglo American Platinum at R 548 each, offered to institutional investors only.
The accelerated bookbuild offer was part of Anglo America’s broader plan to divest its platinum subsidiary.
Shares in Anglo American Platinum ended up 0.6% to R 599.45 on Tuesday in Johannesburg, handing it a market capitalisation of R 165.51 billion.
Anglo American said on Tuesday the demerger of Anglo American Platinum remained on track for completion by the middle of 2025.
As part of this process, work was ongoing to list Anglo American Platinum on the London Stock Exchange, it said then. It will maintain primary listing on the Johannesburg Stock Exchange.
Anglo American also said it planned 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 $3.78 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 R 7.2 billion, around £308.0 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 closed down 0.8% to 2,372.50 pence on Tuesday, while they finished 0.1% lower at R 540.86 in Johannesburg.
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