Diversified mining company Anglo American has sold its stake in South African sugar producer Tongaat Hulett for R4,2-billion (about $523-million), it said on Thursday.

Late last month, the group sold its stake in Hulamin for R1,16-billion.

Anglo announced on Wednesday that it was selling its 49,5% shareholding in Tongaat Hulett, as part of its strategy to sell noncore assets to focus on its core mining operations.

The diversified miner completed the Tongaat Hulett deal by way of an accelerated book build, placing 51,2-million shares at R82 a share with institutional investors.

Anglo said that it sold all its shares in the equity placing and said that there would be no exchangeable bond into Tongaat ordinary shares, as announced previously.

Rand Merchant Bank, Morgan Stanley and UBS Investment Bank are acting as joint book runners for the equity placing.

Tongaat Hulett CEO Peter Staude said that Anglo’s decision to exit the company would enable increased investment by emerging market fund managers, who it said were previously constrained by limited liquidity.

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