Anglo American on track with June demerger of Platinum business
Why we think this is good
The RNS provides a positive update on the demerger of Anglo American Platinum, which is progressing as planned. The strong financial performance of the Platinum business in 2024, with a significant contribution to Anglo American's underlying EBITDA, and the additional dividend payment are positive developments. While the RNS does not contain any material financial updates for Anglo American's overall business, the demerger appears to be a well-managed and value-accretive transaction for the company.
Key Points
- Anglo American on track to demerge Anglo American Platinum (AAP) in June 2025
- AAP reported adjusted EBITDA of ~$1.1 billion for 2024, contributing ~$1.1 billion to Anglo American's underlying EBITDA
- AAP to pay a final dividend for 2024 and an additional cash dividend totaling R16.5 billion (~$0.9 billion), of which Anglo American will receive ~$0.6 billion
- Anglo American will retain a 19.9% shareholding in AAP post-demerger
Summary
Anglo American has made significant progress towards the demerger of its Anglo American Platinum (AAP) business, with a planned completion in June 2025. AAP reported adjusted EBITDA of ~$1.1 billion for 2024, which contributed ~$1.1 billion to Anglo American's underlying EBITDA. AAP will pay a final dividend for 2024 and an additional cash dividend totaling R16.5 billion (~$0.9 billion), of which Anglo American will receive ~$0.6 billion as a c.67% shareholder. Anglo American will retain a 19.9% shareholding in AAP post-demerger to help manage the flowback.