JOHANNESBURG (Reuters) - World No. 1 platinum producer Anglo American Platinum (Amplats) (AMSJ.J) said on Wednesday it had raised 390 million rand ($31 million) after the sale of most of its stake in smaller black-owned rival Royal Bafokeng Platinum (RBPJ.J).
The unit of Anglo American (AAL.L) sold 17.3 million shares at 22.50 rand in an accelerated book build, a 10.6 percent discount on the RBPlat closing share on Tuesday of 25.17 rand.
RBPlat’s share price had fallen over 7 percent at midday to 23.35 rand while Amplats was down over 2 percent.
Amplats said it will use the money to fund its share of a concentrator plant and to provide ongoing funding requirements for the Styldrift mine project which its unit Rustenburg Platinum Mines (RPM) is a partner in with RBPlat.
Amplats said in a statement it will retain about 2.6 percent of RBPlat’s shares. At the end of December, Amplats held over 11 percent of RBPlat via RPM, according to Thomson Reuters’ data.
Reporting by Nomvelo Chalumbira; Editing by Ed Stoddard and Louise Heavens