Indian billionaire's exit pummels Anglo stock
The stock declined to its lowest level on Friday to R363.73 a share, down from Thursday's closing price of R381.78, and closed 3.3 percent weaker at R369.18 at the end of the day.
Agarwal, one of India's richest men, announced last week that he was exiting his investment because his returns were “achieved even sooner than expected”, according to a statement released by his holding company Volcan Investments.
Vedanta Limited’s overseas subsidiary, Cairn India, bought an approximate 2 percent stake last year from parent trust Volcan Investments for $200 million (R2.9 billion).
After announcing his exit from Anglo, it is believed that Agarwal is likely to make about $500m from his investment and pocket between $200m and $300m after fees.
Anglo’s share price had increased by more than 80 percent since March 2017.
The exiting of the Agarwal in Anglo follows the announcement of new appointments to its board in South Africa.
Anglo appointed Nolitha Fakude as chairperson of its management board in South Africa, with effect from September 1, following the retirement of veteran deputy chairperson Norman Mbazima.
The global miner said Fakude would step down as a non-executive director on the board at the end of August in order to take up the new executive role.
Fakude will join the group management committee as group director for South Africa, reporting to chief executive Mark Cutifani. Themba Mkhwanazi, the chief executive of Kumba Iron Ore, will also join the group management committee with effect from August 1.
Hixonia Nyasulu and Nonkululeko Nyembezi were also announced to join the board as non-executive directors, with effect from November 1 and January 1, 2020, respectively.