0% AngloPlat to raise R12.5bn
Brendan Ryan | Mon, 08 Feb 2010 09:49[miningmx.com] -- ANGLO Platinum (AngloPlat) is to hold a massive R12.5bn ($1.6bn) rights offer with the full support of parent Anglo American which has undertaken to follow all its rights and underwrite the balance of the offer. Anglo American holds 79.2% of AngloPlat’s equity and has so far loaned the group – which is the largest platinum producer in the world - R20.1bn. AngloPlat said the proceeds of the offer would used to repay debt which had reached a total of R22.8bn by end-December. The rights offer has been pitched at a price of R502.18 a share which represented a discount of 26% to the volume weighted average price of of AngloPlat of R686,96 as of February 5. Shareholders will be offered 10.38 rights offer shares for every 100 shares held on the record date of the offer which will be March 5. AngloPlat has run up this debt because of the impact of its huge capital expenditure programme as well as falling revenues and profits caused by last year’s collapse in platinum group metal (pgm) prices. Anglo American noted in a separate statement that its take-up of rights and repayment of intercompany debt by AngloPlat will be “in effect, an exchange of debt for equity.” Anglo American added, “following the rights offer, Anglo Platinum will have a more balanced capital structure, enabling it to focus on extracting value from its existing operations through further cost and productivity improvements and optimising its premium portfolio of assets and growth projects through disciplined investment.” AngloPlat’s results for the year to end-December show a 95% drop in operating profit to R921m (previous financial year – R17.6bn) and a 95% fall in headline earnings to R710m (R13.3bn). The company passed its interim and final dividends for 2009 and said dividend payments, “will be resumed when the market conditions and the operating environment permit.”
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