Picture: Billionaire Anil Agarwal. (Twitter).
Picture: Billionaire Anil Agarwal. (Twitter).

Billionaire Agarwal increases his Anglo American stake to 19%

By Staff Reporter Time of article published Oct 16, 2017

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CAPE TOWN - Billionaire Anil Agarwal has increased his stake in Anglo American (JSE: AGL) to 19%, making him the biggest shareholder in the London-headquartered blue-chip mining company. 

Agarwal's Volcon Holdings bought 102.2 million shares in Anglo, according to a regulatory filing on Friday. 

With his 19% stake in the mining company, he is the biggest investor, ahead of South Africa’s Public Investment Corporation.

According to Agarwal, the investment is in a personal capacity. He said he does not have plans to act as an activist, reports Fin24. 

Although,  he amassed his stake through a mandatory exchangeable bond issued by Volcan.

The current structure of shares means that Agarwal rents his shares until the bond matures in 2020 and does not benefit much from a rising stock price. 

This leads analysts to speculate that he might be planning to force a break up of or a merger.

This newly acquired stake comes just a month after Agarwal revealed his plans to purchase as much as £1.5bn (R27bn) worth of additional Anglo American shares. 

This intended investment translated to a 9% stake. 

Anglo American, which was founded over a century ago has survived a deadly debt crisis in 2015. 

The mining company then came back, ambitious than ever by nearly cutting its debt in half over the past year, and is already below its year-end target of $7bn.

READ ALSO: Billionaire Agarwal wants more Anglo shares


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