LONDON - Anglo American (JO:AGLJ) PLC announced the launch of an accelerated bookbuild offering of approximately 16 million shares in its subsidiary, Anglo American Platinum Limited. This move is part of the company's strategy to demerge Anglo American Platinum and is aimed at increasing the subsidiary's free float by an additional 6%, following a previous placement in September 2024.
The demerger process is on track for completion by mid-2025, with plans to list Anglo American Platinum on the London Stock Exchange (LON:LSEG), complementing its primary listing on the Johannesburg Stock Exchange. The offering is intended to enhance market liquidity and reduce potential market disruption upon the final distribution of shares through the demerger.
Duncan Wanblad, Chief Executive of Anglo American, emphasized the positive outlook for Anglo American Platinum, noting its potential as a leading producer of Platinum Group Metals (PGMs) amid favorable market conditions. He stated that the placement would support the company's balance sheet while advancing its goal of simplifying its portfolio with a focus on copper, premium iron ore, and crop nutrients.
Following the completion of the offering, Anglo American South Africa Proprietary Limited's remaining shares in Anglo American Platinum will be under a 90-day lock-up agreement, with standard exceptions. The company does not plan any further market sell-downs ahead of the demerger.
The bookbuild is open to qualifying institutional investors only and is subject to customary selling restrictions. The bookbuilding period commenced immediately, and the terms, including the final number of shares sold and the price per share, will be announced following the close of the bookbuild.
Goldman Sachs International, Morgan Stanley & Co (NYSE:MS). International plc, and Rand Merchant Bank are serving as joint bookrunners, with Investec (LON:INVP) Bank Limited acting as co-manager for the placement.
The information for this article is based on a press release statement.
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