Platinum group metals (PGMs) producer Anglo American Platinum (Amplats) has issued further detail on how its name change to Valterra Platinum will play out over the coming weeks.

At the general meeting of Anglo American held on April 30, shareholders voted overwhelmingly in favour of the proposed demerger of a portion of Anglo American's interest in the PGMs business, now renamed Valterra.

Shareholders also approved the associated share consolidation of Anglo American.

Anglo American stated that it would proceed with the distribution of about 51% of Amplats’ issued share capital. This distribution will be made on the basis of 110 shares in Amplats for every 1 075 Anglo American ordinary shares held.

In conjunction with the demerger, Anglo American confirmed that it would carry out a share consolidation to maintain consistency in its share price before and after the demerger. The company said the share consolidation ratio had been set at 96 new Anglo American shares for every 109 Anglo American shares held at the consolidation record time on May 30.

The consolidation ratio was determined primarily on the basis of the relative three-month volume-weighted average share prices for Anglo American and Amplats up to May 19, with an adjustment made for Amplats’ additional dividend of R59 a share, paid on April 29.

The effective date for the demerger was announced as May 31. Amplats’ ordinary shares will be admitted to the equity shares international commercial companies secondary listing segment of the Financial Conduct Authority’s official list and to trading on the LSE main market for listed securities on June 2. This will be in addition to its existing primary listing on the JSE.

The effective date for Anglo American’s share consolidation will be June 1, with unconditional dealings in the consolidated shares starting on the LSE on 2 June.

The listing and start of dealings in entitlements to the consolidated shares on the JSE will also take place on June 2. Following the share consolidation, Anglo American’s issued share capital will consist of more than 1.18-billion ordinary shares worth $0.62 each.

When the name change comes into effect, Valterra will trade under the share code ‘VAL’ on the JSE. On the LSE, the shares will trade under the ticker symbol ‘VALT’.