13th Feb 2017 16:07
LONDON (Alliance News) - FTSE 100 multi-commodity trader Glencore PLC on Monday said it has bought both the remaining 31% stake in Mutanda Mining Sarl it did not already hold and a 10.25% stake in Katanga Mining Ltd from Fleurette Properties Ltd.
Glencore said the considerations for the two sets of shares was USD922.0 million for the remaining interest in Mutanda and USD38.0 million for the Katanga shares.
The consideration for both stakes was determined based on an analysis by BMO Capital Markets Ltd which Glencore engaged to provide an independent view on the value of the interests.
However, Glencore said it will set-off against the cash consideration payable to Fleurette with loans owed to Glencore by Fleurette, secured over the Mutanda shares, amounting to USD556.0 million, of which USD120.0 comprises of accrued interest.
Alongside this, Glencore has bought shareholder loans owed to Fleurette by Mutanda in the amount of USD130.0 million.
As such, Glencore is paying an aggregate cash consideration of USD534.0 million to Fleurette.
Together with the Fleurette deal, Glencore bought 15.3 million shares in Katanga, equal to an 0.8% stake, which were held as the security for a loan provided to a member of the Fleurette group.
Glencore now owns the entire interest in Mutanda and a 86.33% stake in Katanga.
Shares in Glencore were up 2.6% at 329.10 pence on Monday afternoon.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2017 Alliance News Limited. All Rights Reserved.
Related Shares:
Glencore