(Alliance News) - Volcan Investments Ltd on Friday said it intends to place 24.7 million shares in Anglo American PLC, a 1.9% stake in the company.
Shares in miner Anglo American were down 4.9% at 2,080.50 pence on Friday. Based on this share price, the stake is worth around GBP500 million.
Volcan Investments is owned by the Agarwal family trust.
Anil Agarwal said: "At the time of Volcan's initial investment I explained this was an attractive financial investment in a great company with excellent assets and a strong board and management team.
"This has turned out to be the case, with our target returns achieved even sooner than expected. The share price of Anglo American has close to doubled since Volcan invested, delivering attractive gains to all investors."
"As a shareholder in Anglo American, I have encouraged the company to refocus on its southern African operations, which are the heart of the company and have been such a key driver of the growth in value of the business in the last two years, and to position its business for the many opportunities available in the rapidly growing Indian market," he continued.
The sale follows Volcan's announcement it plans to call its two issues of mandatory exchangeable bonds, which will be settled with shares. The bonds were issued in March and September of 2017 and financed a GBP3.5 billion Volcan investment in Anglo American, representing a roughly 20% stake of Anglo American.
Anglo American (AAL)