Home > Boards > US OTC > Mining/Resources > Katanga Mining Ltd (KATFF)

GLENCORE PURCHASES STAKES IN MUTANDA AND KATANGA

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
JohnCM Member Profile
Member Level 
Followed By 553
Posts 46,764
Boards Moderated 20
Alias Born 06/01/08
160x600 placeholder
JohnCM Member Level  Friday, 05/18/18 07:40:22 AM
Re: None
Post # of 49 
GLENCORE PURCHASES STAKES IN MUTANDA AND KATANGA

Baar, Switzerland 13 February 2017

Glencore has today purchased from subsidiaries of Fleurette Properties Limited (“Fleurette”) the Fleurette group’s remaining 31% stake in Mutanda Mining Sarl (the “Mutanda Shares”) and an approximate 10.25% stake in Katanga Mining Limited (the “Katanga Shares”).

The consideration for the Mutanda Shares and the Katanga Shares has been determined based on an analysis by BMO Capital Markets Limited who was engaged by Glencore to provide an independent view as to the value of the Mutanda Shares and Katanga Shares for the purposes of the transaction.

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 Limited (“Katanga”), 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 (taken 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.

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist