Anglo American has set out a June timeline for the demerger of its platinum business and will retain a 19.9% shareholding in Anglo American Platinum for now.
“We are on a clear timeline towards demerging Anglo American Platinum — the world’s leading PGM [platinum group metal] producer — in June, with its primary listing on the [JSE] and an additional listing on the London Stock Exchange,” Anglo CEO Duncan Wanblad said in a statement on Monday.
He said consistent with the commitment to deliver a responsible demerger, Anglo American intended to retain a 19.9% shareholding in Amplats to further help manage flowback by reducing the absolute size of the shareholding that would be demerged.
“Anglo American will no longer have any representation on the Anglo American Platinum board post demerger and we intend to exit our residual shareholding responsibly over time, and subject to customary lock-up arrangements.”
Anglo said it had made “significant progress” towards the demerger.
Amplats on Monday announced its final dividend for 2024 and an additional cash dividend, together tottaling R16.5bn, which will be payable to all Amplats shareholders ahead of the demerger.
The payment of the additional cash dividend forms part of Amplats’ finalisation of its stand-alone capital structure.
Anglo American, as a 67% shareholder in Amplats, will receive about $0.6bn (about R11bn) from these dividends.
Anglo American intends to seek shareholder approval for the demerger at its AGM on April 30. Amplats will be de-consolidated from Anglo after the demerger.
Amplats on Monday reported annual adjusted earnings before interest, taxes, depreciation and amortisation (ebitda) for 2024 of R19.8bn and headline earnings of R8.4bn, or R32.05 per share, down 40% from the previous year.
Business Day reported previously that Anglo announced its “self-help” restructuring in May last year while rival BHP’s bid was still on the table, though it said at the time that the bid had merely accelerated the restructuring plan.
Anglo plans to slim down to just its copper, iron ore and fertiliser businesses, shedding its PGM, diamond, metallurgical coal and nickel businesses. Its debt-to-earnings ratio was expected to come down to less than one as a result, from 1.1-1.3 now, Wanblad told Business Day earlier in February, positioning it to grow.
He promised last year that the restructuring would be “substantially complete” by end-2025. The group sold its metallurgical coal assets in a series of deals last year. It also sold down its stake in Amplats to 67%, from almost 80%, placing shares in two bookbuild exercises that raised more than $930m.
The secondary listing of Amplats shares in London will make it easier for funds whose mandates do not extend to SA to continue to hold their shares in the platinum company.
With Hilary Joffe
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