Anil Agarwal, an Indian mining billionaire, is buying 1.5 billion pounds ($2 billion) worth of additional Anglo American Plc shares, increasing his stake in the blue-chip British miner that’s benefited from a recovery in commodity prices.
Agarwal said Wednesday the purchase, which is the equivalent of about 9 percent, was a family investment and he doesn’t intend to make a takeover offer for the company, according to a statement. It comes on top of the 12.43 percent stake he’s built since an announcement in March that his Volcan unit was investing in the company.
The Indian tycoon, who is set to become the largest shareholder ahead of South Africa’s Public Investment Corp. after the purchase, offered to merge part of his mining empire with Anglo American last year, only to be rebuffed. The London-based mining group has been seen as a candidate for a potential breakup through splitting some of its South African assets from the global mining business.
“We are encouraged by the performance of Anglo American since our original investment earlier this year,” he said in the statement. “The company has made good progress in its operational and financial performance and remains an attractive investment for our family trust.”
Anglo American shares rose as much as 3.7 percent and were up 2.7 percent by 11:38 a.m. in London. Before news of the sale, the stock had climbed 12 percent this year.
For the rest of this article: https://www.bloomberg.com/news/articles/2017-09-20/billionaire-agarwal-to-boost-anglo-american-stake-by-2-billion