Angloplat down on dilution fears
2010-08-06 19:52
Johannesburg - Anglo Platinum [JSE:AMS], the world's biggest producer of the metal, said on Friday it would offer new shares to former preference shareholders, sending its share price down on dilution fears.
The offering could dilute existing shareholders by more than 3%, according to Reuters calculations.
The company said it would issue new stock to investors who missed a deadline to convert preference shares last year.
It had issued 40 million convertible preference shares but did not say how many failed to be converted.
Investors who missed the deadline would be offered new shares at a ratio of 0.2271 for every preference share held, the company said.
That could mean as many as 9 million new shares, or more than 3 percent of Angloplat's existing shares. Shares in Angloplat closed down 3.2% at R711.66, which compared with a 1% fall in the JSE top-40 index.
- Reuters