Anglo American PLC (NGLOY.US) sells 6.6% of Anglo Platinum (ANGPY.US) to raise $530 million
1min read Anglo American PLC (NGLOY.US) raised R9.6bn ($530m) by selling 6.6% of Anglo Platinum (ANGPY.US), in a move aimed at increasing the free float of its South African unit ahead of a full exit.
The mining company said it sold 17.5 million shares in its platinum group metals unit at R548 each, according to a statement on Wednesday. The publicly traded Anglo Platinum shares have more than doubled since Anglo American completed a smaller sell-off in September.
Anglo American announced in May that it planned to exit its controlling stake in Anglo Platinum as part of a broader restructuring plan to respond to BHP Group's (BHP.US) $49bn takeover offer.
The company currently owns nearly 67% of Anglo Platinum and said the spin-off is expected to be completed by mid-2025. It said it does not plan to sell any further shares in Anglo Platinum before the planned spin-off.
Earlier this week, Anglo American announced it had agreed to sell its coal business for as much as $3.78bn. The group also plans to exit nickel mining and spin off or split its De Beers diamond business.
Anglo Platinum and its South African peers, the world's largest platinum producers to date, have been struggling with depressed prices that have led to sharply reduced profits and forced them to cut costs. In the long term, the companies are focusing on finding alternative sources of consumption to replace the declining demand from the automotive industry, which uses platinum group metals to curb emissions from gasoline and diesel cars.