9th Jun 2016 05:38
LONDON (Alliance News) - Multi-commodities miner and trading house Glencore PLC on Thursday said it has agreed to sell a further stake in its Agricultural Products business to British Columbia Investment Management Corp.
Glencore will sell a 9.99% stake in the business to British Columbia Investment for USD624.9 million, which values the total unit at USD6.25 billion.
The deal is in addition to the USD2.5 billion sale of a 40% stake in the Agricultural Products business to Canada Pension Plan Investment Board, announced back in April.
Glencore said the proceeds from the two sales will be used by the group to cut its debt pile. The deal means the group has so far this year agreed USD3.2 billion in disposals, a big portion of its USD4 billiion to USD5 billion target for 2016.
"We are pleased to welcome another long-term partner into Glencore Agri who shares our vision to capture the significant opportunities we believe will emerge for Glencore Agri over coming years. These transactions highlight the superior value of Glencore Agri, with its advantaged asset footprint and business model, relative to its closest peers," said Ivan Glasenberg, Glencore's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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