Angloplat down on dilution fears

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

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
16.66
+0.7%
Rand - Pound
20.16
+0.5%
Rand - Euro
16.99
+0.5%
Rand - Aus dollar
11.62
-0.3%
Rand - Yen
0.12
+0.5%
Gold
1,782.54
+0.4%
Silver
20.27
+1.9%
Palladium
2,195.50
+3.1%
Platinum
941.00
+0.4%
Brent Crude
94.92
+0.8%
Top 40
63,452
+0.5%
All Share
69,896
+0.5%
Resource 10
64,422
+0.6%
Industrial 25
85,378
+0.5%
Financial 15
15,746
+0.5%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE