Glencore purchases stakes in Mutanda and Katanga

The consideration for the Mutanda Shares and the Katanga Shares has been determined based on an analysis by BMO Capital Markets Ltd.

The consideration for the Mutanda Shares is US$922 million and the Katanga Shares is US$38 million. Glencore will set-off against the cash consideration payable to Fleurette, loans owing to the Glencore group by Fleurette and its affiliates, and secured over the Mutanda Shares, amounting to US$556 million of which US$120 million comprises accrued interest. In addition, Glencore has acquired shareholder loans owed to the Fleurette group by Mutanda Mining Sarl in the amount of US$130 million.

Accordingly, the aggregate cash consideration payable by the Glencore group in respect of the transactions is US$534 million. In addition, Glencore has acquired a further 15 325 000 shares in Katanga Mining Ltd, corresponding to an approximate 0.8% stake, which were held as the security for a loan provided to Ruwenzori Limited, a member of the Fleurette group, in connection with Ruwenzori’s acquisition of 25 000 000 shares in Nikanor PLC which were issued as part of a private placement. Nikanor PLC subsequently merged with Katanga and the shares were exchanged for shares in Katanga.

Glencore now owns 100% of the shares in Mutanda and approximately 86.33% of the shares in Katanga. The transactions (together) constitute a smaller related party transaction as defined in Listing Rule 11.1.10 and Glencore has accordingly obtained written confirmation from a sponsor that the terms of the transactions with Fleurette and its affiliates are fair and reasonable as far as the shareholders of Glencore are concerned.

Read the article online at: https://www.drybulkmagazine.com/material-handling/15022017/glencore-purchases-stakes-in-mutanda-and-katanga/