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.
AIR DEFENSE: The Norwegian missile system has proved highly effective in Ukraine in its war against Russia, and the US has recommended it for Taiwan, an expert said The Norwegian Advanced Surface-to-Air Missile Systems (NASAMS) Taiwan ordered from the US would be installed in strategically important positions in Taipei and New Taipei City to guard the region, the Ministry of National Defense said in statement yesterday. The air defense system would be deployed in Taipei’s Songshan District (松山) and New Taipei City’s Tamsui District (淡水), the ministry said, adding that the systems could be delivered as soon as the end of this year. The US Defense Security Cooperation Agency has previously said that three NASAMS would be sold to Taiwan. The weapons are part of the 17th US arms sale to
INSURRECTION: The NSB said it found evidence the CCP was seeking snipers in Taiwan to target members of the military and foreign organizations in the event of an invasion The number of Chinese spies prosecuted in Taiwan has grown threefold over a four-year period, the National Security Bureau (NSB) said in a report released yesterday. In 2021 and 2022, 16 and 10 spies were prosecuted respectively, but that number grew to 64 last year, it said, adding that the Chinese Communist Party (CCP) was working with gangs in Taiwan to develop a network of armed spies. Spies in Taiwan have on behalf of the CCP used a variety of channels and methods to infiltrate all sectors of the country, and recruited Taiwanese to cooperate in developing organizations and obtaining sensitive information
BREAKTHROUGH: The US is making chips on par in yield and quality with Taiwan, despite people saying that it could not happen, the official said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has begun producing advanced 4-nanometer (nm) chips for US customers in Arizona, US Secretary of Commerce Gina Raimondo said, a milestone in the semiconductor efforts of the administration of US President Joe Biden. In November last year, the commerce department finalized a US$6.6 billion grant to TSMC’s US unit for semiconductor production in Phoenix, Arizona. “For the first time ever in our country’s history, we are making leading edge 4-nanometer chips on American soil, American workers — on par in yield and quality with Taiwan,” Raimondo said, adding that production had begun in recent
Seven hundred and sixty-four foreigners were arrested last year for acting as money mules for criminals, with many entering Taiwan on a tourist visa for all-expenses-paid trips, the Criminal Investigation Bureau (CIB) said on Saturday. Although from Jan. 1 to Dec. 26 last year, 26,478 people were arrested for working as money mules, the bureau said it was particularly concerned about those entering the country as tourists or migrant workers who help criminals and scammers pick up or transfer illegally obtained money. In a report, officials divided the money mules into two groups, the first of which are foreigners, mainly from Malaysia
RSS