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Definition

The selling of shares due to a merger between companies in different countries where some shareholders do not want to have exposure to the unbundled shares in one of the countries. For example, on 25th April 2024, the directors of Anglo American (AGL) received an unsolicited offer to acquire 100% of their issued share capital from the BPH group. The offer was dependent on the unbundling of Anglo's holdings in Kumba (KIO) and Amplats (AMS). The offer was rejected by Anglo and would have resulted in a high risk of the sale of shares in the two unbundled companies by Anglo’s overseas shareholders who did not want to hold shares in South African companies. This type of risk is known as "flowback risk".

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