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LONDON - Anglo American (JO:AGLJ) PLC has announced the publication of a shareholder circular regarding the demerger of its majority-owned platinum group metals business, Anglo American Platinum Limited (AAP), as part of a strategic move to streamline its portfolio. The company seeks shareholder approval for the demerger at a General Meeting scheduled for Wednesday, April 30, 2025.
The demerger is a key step in a plan unveiled in May 2024 aimed at unlocking value by concentrating on copper, premium iron ore, and crop nutrients. AAP, which is set to be renamed Valterra Platinum Limited subject to shareholder approval at AAP's annual general meeting on May 8, 2025, will be listed on both the Johannesburg Stock Exchange (JSE) and the London Stock Exchange (LON:LSEG) (LSE), enhancing its visibility and trading liquidity.
Duncan Wanblad, Chief Executive of Anglo American, expressed confidence in AAP's capabilities to thrive independently, emphasizing the timing as ripe for the demerger, allowing shareholders to directly participate in AAP's success. Craig Miller, CEO of AAP, highlighted the company's industry-leading resources and integrated processing capacity as the foundation for its investment appeal, especially in light of the current supply deficit in Platinum Group Metals (PGMs) and minimal industry investment in new production capacity.
Anglo American has already reduced its ownership in AAP from 79% to approximately 67% by selling an 11.9% shareholding. Post-demerger, Anglo American will retain about 19.9% of AAP, which they intend to manage responsibly over time to effect a full separation.
Shareholders of Anglo American are set to receive 110 AAP shares for every 1,075 Anglo American shares held if the demerger is approved. The effective date for the demerger is anticipated to be May 31, 2025, with AAP shares expected to begin trading on the LSE on June 2, 2025.
The demerger process will also involve a share consolidation for Anglo American, with the ratio to be determined based on the relative three-month volume-weighted average share prices of both companies up to the day before the ratio announcement on May 20, 2025. The consolidation is slated to take effect on June 1, 2025.
This strategic move is subject to shareholder approval at the upcoming General Meeting, with full details available in the shareholder circular published on April 8, 2025. The information is based on a press release statement from Anglo American.
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