Table of Contents
Key Points
- Anglo American accelerates restructuring with $527 million sale of 6.6% stake in Amplats to streamline operations.
- The sale, upsized due to strong demand, reduces Anglo’s stake in Amplats ahead of planned spin-off.
- Anglo’s portfolio overhaul includes a $4.9 billion coal business sale and potential exit from De Beers.
Anglo American Plc, the global mining giant led by South African executive Duncan Wanblad, has accelerated its restructuring efforts with the planned $527 million divestment of shares in Anglo American Platinum Limited. (Amplats). The sale aligns with the mining giant’s strategy to streamline operations and advance a phased exit from its South African platinum unit.
The company is offering 17.5 million shares—equivalent to a 6.6 percent stake in Johannesburg-listed Amplats—at R548 ($30.10) per share. Strong demand prompted the deal's upsizing, marking a follow-up to September’s smaller sell-down. The move advances Anglo’s objective to increase Amplats' free float ahead of a planned separation next year.
Amplats spin-off, portfolio overhaul
Earlier this week, Anglo announced a $4.9 billion coal business sale, while plans to exit nickel and potentially spin off its De Beers diamond unit are underway.
The transaction is expected to generate significant proceeds while reducing Anglo’s stake in Amplats, one of the world’s largest platinum producers. The proceeds will fuel ongoing restructuring initiatives, which include divestments across its portfolio to refocus on core operations.
Anglo’s pivot follows its rejection of an unsolicited $49 billion takeover bid from BHP Group in May. The bid, while declined, catalyzed a shift in strategy under Wanblad, who has been steering the company toward optimizing its portfolio since assuming leadership in April 2022.
Amplats’ planned separation is designed to mitigate “flowback,” a phenomenon where spin-off shares fall outside investor mandates. Anglo aims to limit disruptions by reducing the number of Amplats shares distributed to its shareholders and is actively pursuing a London secondary listing to enhance international investor access.
Anglo American shifts focus to core assets
Under Wanblad’s leadership since April 2022, Anglo American has initiated a comprehensive restructuring aimed at enhancing shareholder value. With operations spanning across Africa, Asia, Australia, Europe, and the Americas, the company maintains its position as the world’s largest producer of platinum, diamonds, and steelmaking coal.
This restructuring underscores Anglo American’s commitment to long-term value creation. Recent strategic actions include the $195 million sale of two royalty stream assets and the $1.1 billion divestment of its 33.3 percent stake in Jellinbah Group to Zashvin Pty Limited.
Through these latest moves, Anglo American reaffirms its focus on refining its portfolio, sharpening its focus on core operations, and positioning itself to better meet the evolving demands of the global mining sector.
