Anglo American has said it is pressing ahead with the demerger of Anglo American Platinum, targeting a June separation.
The mining giant, which owns approximately 67 per cent of the world’s leading platinum group metals (PGMs) producer, said it would seek shareholder approval at its 30 April annual general meeting for the split.
The company said it would retain a 19.9 per cent stake but plans a gradual exit following the separation.
The decision to offload its platinum business is part of a broader strategic shift for the mining group.
Anglo Platinum will operate as an independent entity, no longer consolidated under the larger group’s financials.
Duncan Wanblad, chief executive said: “We are on a clear timeline towards demerging Anglo American Platinum – the world’s leading PGM producer – in June, with its primary listing on the Johannesburg Stock Exchange and an additional listing on the London Stock Exchange.
“Consistent with our commitment to deliver a responsible demerger, Anglo American intends to retain a 19.9 per cent shareholding in Anglo American Platinum in order to further help manage flowback by reducing the absolute size of the shareholding that will be emerged.
“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.”
Windfall
The miner said the transaction would generate an immediate windfall for the group.
The miner said it would receive a total dividend payout of R16.5bn ($0.9bn) ahead of the split, with the parent’s share amounting to roughly $0.6bn – the PGMs unit reported an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of R19.8bn ($1.1bn) for 2024.
The finalisation of the demerger, along with Anglo American’s upcoming annual results on 20 February, will offer a clearer picture of how the firm intends to deploy capital freed up by its PGMs exit.