Anglo American owns a 79% stake in South African company Amplats, the world's leading producer of platinum group metals. In May 2024, the British company announced plans to spin off Amplats into an independent entity.

This week, Anglo American offered 13.94 million ordinary shares in Amplats, raising 7.2 billion rand (around $400 million). This sale is part of the process to separate Amplats into its own company. 

According to Duncan Wanblad, CEO of Anglo America, the placing“is expected to increase share trading liquidity in the near term as well as mitigate the impact of flowback following the demerger as a result of fewer Anglo American Platinum shares being distributed to Anglo American’s shareholders.”

As part of a restructuring plan announced in May 2024, Anglo American is disposing of its 79% interest in Amplats. The demerger of the world's leading platinum producer is expected to be completed next year. However, JP Morgan warns that this could lead to capital flight from South Africa, as Amplats shares distributed to Anglo American shareholders may not be actively traded on the Johannesburg Stock Exchange.

Amplats is the top producer of platinum group metals, with its mines in South Africa and Zimbabwe producing 3.8 million ounces in 2023.

Emiliano Tossou