EDITORIAL: Valterra’s PGM theory for European investors
Anglo is betting that a stand-alone platinum unit will command a higher value in the market
The listing of Valterra Platinum is an experiment that tests investors’ theory in real time. By carving out the world’s largest platinum group metal (PGM) producer, formerly Anglo American Platinum, or Amplats, into a stand-alone company, parent Anglo American is effectively asking European investors to put fresh value on an old business.
The stakes are high. This demerger was conceived after Anglo fended off a R700bn-plus takeover bid from rival BHP, using asset spin-offs such as platinum as a defensive strategy. Now, the success of Valterra will reveal whether that strategy — and the theory behind it — holds water...
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