Anglo American Sells $530M Stake in Amplats as Exit Looms
TLDR
- Anglo American Plc raises 9.6 billion rand through 6.6% stake sale in Amplats at 548 rand per share.
- Sale enhances Amplats' free float before Anglo's planned exit as part of restructuring strategy.
- Amplats seeks new markets for growth amid challenges in platinum-group metals sector.
Anglo American Plc has raised 9.6 billion rand ($530 million) by selling a 6.6% stake in Anglo American Platinum (Amplats). The sale, at 548 rand per share, boosts Amplats' free float ahead of Anglo’s planned exit, part of a broader restructuring strategy.
Following the sale, Anglo now holds nearly 67% of Amplats and stated it won’t reduce its stake further before a planned demerger in mid-2025. This aligns with Anglo’s May announcement to divest its controlling interest in Amplats, responding to a $49 billion takeover proposal from BHP Group.
Amplats, a key player in South Africa’s platinum-group metals sector, has faced weak prices and reduced profits, driven by declining auto sector demand for PGMs. The company and its peers are exploring alternative markets for long-term growth.
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Key Takeaways
The sale follows Anglo’s agreement earlier this week to sell its coal business and plans to divest from nickel mining and its De Beers diamond unit. Anglo’s stake reduction in Amplats reflects a shift to streamline its portfolio amid challenging market conditions. The planned exit aligns with restructuring efforts to optimize shareholder value, while Amplats and peers face pressure to adapt to evolving demand in the platinum market.
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