Anglo American Plc. (AAL), the mining company that makes up about 9 percent of South Africa’s benchmark index, advanced the most in two weeks after it sold a stake in a unit in Chile.
The stock rose 3.6 percent to 307.55 rand at the close in Johannesburg, the highest level since Oct. 27. Anglo American sold a 24.5 percent holding in its Anglo Sur unit in Chile to Mitsubishi Corp. (8058), Japan’s largest trading company, for $5.39 billion, the London-based company said in a statement today.
Mitsubishi is paying more than 18 times the enterprise value over Anglo American Sur’s 2010 earnings before interest, tax, depreciation and amortization, Anglo American Chief Executive Officer Cynthia Carroll said on a conference call. That compares with the average EV/EBITDA ratio for copper deals in the past 12 months of 13.2 times, according to data compiled by Bloomberg.
“They are definitely going to be using these funds from the sale for the De Beers assets they are buying and possibly paying a special dividend to shareholders,” Clinton Duncan, a resources analyst at Johannesburg-based Avior Research Ltd., said by phone.
Anglo agreed to buy the Oppenheimer family’s 40 percent stake in De Beers on Nov. 4 for $5.1 billion. If the Botswana government exercised its option to increase its stake in De Beers from 15 percent to 25 percent, Anglo would pay just under $4 billion for its enlarged stake in the world’s largest diamond miner, Duncan said.
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