FTSE 100 mining giant Anglo American plots South Africa spin-off
Anglo American is plotting a multi-billion pound spin-off of its operations in South Africa.
The FTSE 100 mining giant has come under pressure from its largest investor, South African pension fund Public Investment Corporation (PIC), to package and sell its assets in the country, including its platinum division.
But the company is determined to keep hold of its platinum arm, the Sunday Telegraph reported, and investors will be updated on plans in February.
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Chief executive Mark Cutifani has confirmed the company is looking "all options" for its thermal coal and iron ore businesses in South Africa.
He told the Telegraph:
We have to define what that would look like. We have said that we are open-minded on how we might structure the divestments. We’ve got that work under way, including price discovery – what value would someone be willing to pay for what are high-quality, cash-generative assets? – and whether some form of asset bundling would make sense.
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It was reported that Anglo is looking to focus on diamonds, platinum and copper, while packaging up non-core assets in thermal coal and iron ore.
Anglo unveiled a major turnaround plan to create a “new” business in February this year.
Anglo American declined to comment.