On 10 September 2024, Anglo American plc (Anglo American) announced that its wholly owned subsidiary, Anglo American South Africa Proprietary Limited (AASA) launched an accelerated bookbuild offering of approximately 13 million ordinary shares of Anglo American Platinum Limited (Anglo American Platinum).
Build up
On 14 May 2024, Anglo American announced its plan to unlock the significant value inherent in its portfolio through the acceleration of its strategy and delivery of consistently stronger shareholder returns. Integral to achieving those objectives was the demerger of Anglo American’s 78.56% stake in Anglo American Platinum, to be implemented in a responsible and orderly way to optimise value for both Anglo American’s and Anglo American Platinum’s shareholders.
The Placing was intended to broaden the free float of Anglo American Platinum, reduce the number of shares distributed to Anglo American shareholders upon demerger and thereby reduce flowback following the demerger. The Placing will also raise proceeds for Anglo American. As recently disclosed at Anglo American’s Interim Results, preparatory work to deliver the demerger was well under way and on track, while Anglo American Platinum was also actively considering the option of a listing in London in addition to the primary listing on the Johannesburg Stock Exchange.
Duncan Wanblad, chief executive of Anglo American, said, “Anglo American Platinum is the world’s leading primary producer of platinum group metals and is well positioned to benefit from its remarkable resource endowment and the attractive structural market dynamics for its metals and their role in emissions reduction and clean energy. Through this Placing we are moving pro-actively to distribute some of our Anglo American Platinum shares into the hands of a wider range of investors ahead of the planned demerger. This is expected to increase share trading liquidity in the near term as well as mitigate the impact of flowback following the demerger as a result of fewer Anglo American Platinum shares being distributed to Anglo American’s shareholders. The proceeds from the Placing will also reduce our net debt as we continue to implement our portfolio transformation to focus on copper, premium iron ore and crop nutrients – and thereby drive sustainably attractive returns.”
The company said that the bookbuilding period for the Placing would commence with immediate effect and AASA reserved the right to close the bookbuilding process at any time.
On 11 September, it was announced that Anglo American had sold 13 940 000 ordinary shares of Anglo American Platinum, representing approximately 5.3% of its total issued ordinary shares, at a price of R515.00 per share.
It was reported that the Placing raised gross proceeds of R7.2-billion (approximately USD400-million). 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 16 September 2024 (on a T+3 basis) on the Johannesburg Stock Exchange.
As part of the Placing, AASA’s remaining shares in Anglo American Platinum will be subject to a lock-up of 90 days, subject to customary exceptions. Goldman Sachs International, Morgan Stanley & Co. International plc and Rand Merchant Bank (a division of FirstRand Bank Limited) acted as joint bookrunners in connection with the Placing.
Source: Supplied by Anglo American