Anglo American Platinum to Relaunch as Valterra Platinum Following Demerger

Anglo American Platinum (Amplats) is set to begin operations as a standalone company under the name Valterra Platinum on May 28, following its demerger from parent company Anglo American. The new name, a combination of "Value" and "Terra" (Latin for earth), reflects the company's focus on maximizing shareholder value and its connection to natural resources. Shareholders will vote on the name change during the annual general meeting scheduled for May 8.

The name change was detailed in a notice to shareholders

Anglo American initially announced plans for the demerger in May 2024 as part of a broader strategy to simplify its portfolio and concentrate on copper, iron ore, and fertilizer assets. The company has since reduced its stake in Amplats to 67% from 79% through private placements, raising R16.8 billion ($912 million) in the process. Anglo also received part of a special cash dividend of R15.7 billion ($851 million), declared by Amplats in February, which was described as an efficient method of realigning the capital structure ahead of the demerger.

Amplats unveiled a R15.7bn special dividend ahead of the June demerger

Following the split, Anglo will retain a minority stake of 19.9% in Valterra Platinum but will relinquish all board and committee representation. The new entity will maintain its primary listing on the Johannesburg Stock Exchange and take a secondary listing in London to minimize share flowback from investors unable to hold Johannesburg-listed stocks.

As part of the demerger, Valterra Platinum will take a secondary listing in London

The decision comes amid challenging market conditions for platinum group metals (PGMs), with prices remaining depressed due to declining demand from the automotive sector and other industries. Analysts have raised concerns about Valterra Platinum’s ability to maintain financial stability under these conditions, emphasizing the need for a fortified balance sheet.