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JOHANNESBURG - Mining giant Anglo American (JO:AGLJ) PLC has detailed its schedule for the planned demerger of its majority-owned subsidiary, Anglo American Platinum Limited, set for June this year. The separation will see Anglo American Platinum, a leading producer of platinum group metals (PGMs), independently listed on the Johannesburg Stock Exchange with an additional listing on the London Stock Exchange (LON:LSEG).
Ahead of the demerger, Anglo American Platinum declared a final dividend for 2024, along with an extra cash dividend, cumulatively amounting to R16.5 billion (about $0.9 billion). This payout, expected to be distributed to all shareholders of Anglo American Platinum, is part of the company's efforts to finalize its capital structure as a standalone entity. As a roughly 67% stakeholder in Anglo American Platinum, Anglo American is poised to receive approximately $0.6 billion from these dividends.
Duncan Wanblad, Chief Executive of Anglo American, stated that the company is on track with its demerger process, emphasizing the intention to retain a 19.9% stake in Anglo American Platinum post-demerger. This move aims to mitigate the market impact by decreasing the size of the shareholding to be demerged. Following the demerger, Anglo American will not have any board representation in Anglo American Platinum and plans to responsibly divest its remaining shares over time, adhering to standard lock-up agreements.
Shareholder approval for the demerger will be sought during Anglo American's Annual General Meeting on April 30, 2025, pending necessary governance and regulatory consents. Post-demerger, Anglo American Platinum's financials will be de-consolidated from Anglo American's books. As of December 31, 2024, Anglo American Platinum reported a net cash position of around $0.9 billion, including a $0.6 billion customer prepayment.
The adjusted EBITDA for Anglo American Platinum in 2024 was R19.8 billion (approximately $1.1 billion), which aligns with the contribution to Anglo American's underlying EBITDA when accounting for corporate cost allocations and other reconciling items. Anglo American is scheduled to announce its own full-year results for 2024 on February 20, 2025.
This news is based on a press release statement from Anglo American PLC.
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