Glencore, the world’s biggest commodities trader, is to raise up to 5 billion euros (US$6.3 billion) in one of the biggest flotations on the London stock market, City sources said. Analysts value the company at 45 billion euros.
Proceeds from a flotation will be used to expand the mining side of Glencore’s business, with the Swiss-based company looking at acquisitions in Brazil, Australia and South Africa.
Glencore took the first step toward becoming a public company recently by issuing up to US$2.2 billion in convertible bonds to strategic investors in the US, Singapore and China.
“The mix of investors is typical of what you would expect in a pre-initial public offering,” a commodities banker said.
A flotation is penciled in for next year, but could come earlier if the economic recovery gathers steam and prices continue their upward trajectory.
The company also owns a variety of mining assets and companies. The value of its 34.5 percent stake in Xstrata has risen from £2.2 billion (US$3.25 billion) to £12 billion in 18 months.
Glencore’s increasing openness further moves it away from its roots under Marc Rich, the oil trader who founded Glencore in 1974, but later sold out to management. Some observers suggest preparation for a flotation is the precursor to a merger with Xstrata, which could create a natural resources group valued at more than US$50 billion.
Sources say that the merger option is the preferred route for Ivan Glasenberg, Glencore’s chief executive, and there have been reports that executives have met Xstrata shareholders.
Glencore is seeking a flotation because, as a private company led by a partnership, its growth options are few. Relying on the bond markets limits its ability to make big acquisitions. If it could raise equity on the stock market, the company could expand more rapidly and take much bigger strides along the way.
PROVOCATIVE: Chinese Deputy Ambassador to the UN Sun Lei accused Japan of sending military vessels to deliberately provoke tensions in the Taiwan Strait China denounced remarks by Japan and the EU about the South China Sea at a UN Security Council meeting on Monday, and accused Tokyo of provocative behavior in the Taiwan Strait and planning military expansion. Ayano Kunimitsu, a Japanese vice foreign minister, told the Council meeting on maritime security that Tokyo was seriously concerned about the situation in the East China and South China seas, and reiterated Japan’s opposition to any attempt to change the “status quo” by force, and obstruction of freedom of navigation and overflight. Stavros Lambrinidis, head of the EU delegation to the UN, also highlighted South China Sea
The final batch of 28 M1A2T Abrams tanks purchased from the US arrived at Taipei Port last night and were transported to the Armor Training Command in Hsinchu County’s Hukou Township (湖口), completing the military’s multi-year procurement of 108 of the tanks. Starting at 12:10am today, reporters observed more than a dozen civilian flatbed trailers departing from Taipei Port, each carrying an M1A2T tank covered with black waterproof tarps. Escorted by military vehicles, the convoy traveled via the West Coast Expressway to the Armor Training Command, with police implementing traffic control. The army operates about 1,000 tanks, including CM-11 Brave Tiger
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, said it expects its 2-nanometer (2nm) chip capacity to grow at a compound annual rate of 70 percent from this year to 2028. The projection comes as five fabs begin volume production of 2-nanometer chips this year — two in Hsinchu and three in Kaohsiung — TSMC senior vice president and deputy cochief operating officer Cliff Hou (侯永清) said at the company’s annual technology symposium in Silicon Valley, California, last week. Output in the first year of 2-nanometer production, which began in the fourth quarter of last year, is expected to
Taiwan’s drone exports surged past US$100 million in the first quarter, exceeding last year’s full-year total, with the Czech Republic emerging as the largest buyer, the Ministry of Economic Affairs said. Exports of complete drones reached US$115.85 million in the period, about 1.2 times the total recorded for all of last year, the ministry said in a report. Exports to the Czech Republic accounted for about US$100 million, far outpacing other markets. Poland, last year’s top destination, recorded about US$11.75 million in the first quarter. Taiwan’s drone exports have expanded rapidly in the past few years, with last year’s total
RSS