The Anglo American Platinum site outside Rustenburg, South Africa. The 13.94 million shares were sold at 515 rand apiece, raising 7.2 billion rand ($403 million), London-listed Anglo said in a statement on Wednesday. That represented about 5.3% of Amplats’s total issued ordinary shares.
Amplats shares declined as much as 11% in Johannesburg, where Anglo’s platinum-group metals subsidiary is listed. That’s the largest drop since April.
The sale — at a 20% discount to the 30-day average share price — “may signal the extent of the value leakage in the restructuring process,” Bloomberg Intelligence analysts Grant Sporre and Alon Olsha wrote in a note.
Anglo announced plans to exit its majority interest in Amplats in May as part of a wider restructuring plan that was unveiled in response to an unsolicited $49 billion takeover proposal by BHP Group. Anglo rebuffed the approach, partly because it deemed proposals to exit Amplats and Kumba Iron Ore Ltd. before a takeover could proceed as too complicated.
Read More: Anglo Goes for Bold Breakup Plan in Move to Fend Off BHP
The sale on Tuesday cut the number of Amplats shares to be distributed among Anglo shareholders and thus reduced so-called flowback — referring to investors offloading shares obtained through a merger or spinoff, for example, because their mandates don’t allow them to hold a stock.