Shares in the platinum arm of Anglo American edged higher on their London debut in a boost for the City.
The mining giant spun off its Amplats business – renamed Valterra Platinum – as part of a restructuring plan launched last year to defeat a takeover bid by rival BHP.
Valterra yesterday launched its secondary listing on the London Stock Exchange about a week after making its market debut in Johannesburg.
Shares started trading at 2,830p and closed up 2 per cent at 2,890p, valuing it at £7.8billion.
The firm ‘briefly’ considered a US listing but ‘discounted [that idea] quite early on’, Valterra chief executive Craig Miller said.
Instead, the firm chose London’s stock market for its mining sector knowledge and experience.
Debut: Anglo American spun off its Amplats business – renamed Valterra Platinum – as part of a restructuring plan to defeat a takeover bid by rival BHP
And the location will make it easier for Anglo American shareholders in the UK to buy in to the firm.
Miller said: ‘It’s predominantly to enable Anglo American’s existing shareholders offshore of South Africa to continue to hold shares in Valterra Platinum.’
The spin-off came as a ‘surprise’ to Miller when the plan was unveiled by Anglo chief executive Duncan Wanblad last year. It was part of a huge overhaul of the FTSE 100 company, which is listed in London.
Anglo has sold its steel making coal and nickel businesses and is planning to offload diamond firm De Beers – although a time frame has not been set.
Anglo will continue to hold a near-20 per cent stake in Valterra. Wanblad said: ‘For Anglo American, this is a major step in our plan to unlock the inherent value in our portfolio as a whole, with enhanced focus on our world-class positions in copper, iron ore and crop nutrients.’
…but Indivior quits LSE
Indivior has become the latest firm to quit London’s stock market for the US.
The pharmaceutical group moved its primary listing to New York last year.
And yesterday it revealed it will cancel its secondary listing in London in another blow to the City.
The liquidity on Nasdaq ‘far outweighed’ that of London, an Indivior spokesman said.
The London Stock Exchange last year saw 88 firms delist or transfer their primary listing – the most since 2009.
DIY INVESTING PLATFORMS
AJ BellAJ Bell
Easy investing and ready-made portfolios
Hargreaves LansdownHargreaves Lansdown
Free fund dealing and investment ideas
interactive investorinteractive investor
Flat-fee investing from £4.99 per month
InvestEngineInvestEngine
Account and trading fee-free ETF investing
Trading 212Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
Share or comment on this article:
Platinum miner shows its mettle: Anglo American’s spin-off climbs on London debut in boost for the City