Anglo American’s South African corporate office in Rosebank, Johannesburg. Picture: Supplied
The majority shareholding in Anglo American Platinum has shifted under a related party transaction for administrative purposes, with the deal now awaiting approvals from the Takeover Regulation Panel.
Anglo American Platinum (Amplats) said on Friday that Anglo American South Africa has reduced its shareholding in the company from 66.7% to 0% ahead of Anglo American’s demerger of the platinum group metals (PGM) unit.
Anglo American International is the new majority shareholder in Amplats.
The transaction is part of an internal re-organisation exercise being undertaken by Anglo American.
“Anglo American South Africa Proprietary Limited, a wholly-owned subsidiary of Anglo American, has notified the company that it has disposed of its entire 66.7% beneficial interest in the securities of the company to Anglo American International Limited, which is also a wholly owned subsidiary of Anglo American, such that it now holds 0% of the issued ordinary shares in the company,” Amplats said on Friday.
In May Anglo American announced a “plan to unlock significant value inherent in its portfolio through, amongst other things, the demerger” of its stake in Amplats “in a responsible and orderly manner to optimise value for shareholders of both companies.
In September, the London and Johannesburg listed company also notified of an internal re-organisation undertaken by certain Anglo American subsidiaries in South Africa in preparation for the Amplats demerger.
However, there “likely won’t be an outright sale to any one” entity, FNB wealth and investments head of investment research, Chantal Marx, told Business Report in an interview.
Over the last few months Anglo American has been selling down its stake in Amplats in the market – boosting its coffers in the process.
Amid the currently depressed prices for PGM, Marx said demand/supply fundamentals for the commodity “favour stronger” pricing in the outlook. Nonetheless, “this has been the case for some time and prices have been struggling to find support and turn” meaningfully higher.
After Anglo American International notified Amplats of acquisition of the 66.7% stake in Amplats from Anglo American South Africa, the PGM producer has “filed the required notices” with the Takeover Regulation Panel.
Amplats will release its 2024 full year financials on Monday. It expects headline earnings per share plunge from 5 330 cents in 2023 to between 2 889 cents per share and 3 421 cents per share in the year to end December 2024.
“The decrease in earnings compared to 2023 is primarily due to a 13% decline in realised ZAR PGM prices. Most most notably, palladium and rhodium realised US dollar prices decreased 24% and 30% respectively,” said the company in a trading update.
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