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GLENCORE PLC - GLN - Glencore and HNA establish HG Storage International Ltd.

Release Date: 31/03/2017 16:54
Code(s): GLN     PDF:  
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GLN - Glencore and HNA establish HG Storage International Ltd.

Glencore plc
(Incorporated in Jersey under the Companies (Jersey) Law 1991)
(Registration number 107710)
JSE Share Code: GLN
LSE Share Code: GLEN
HKSE Share Code: 805HK
ISIN: JE00B4T3BW64

Baar, Switzerland

31 March 2017

Glencore and HNA establish HG Storage International Ltd.

Glencore plc (“Glencore”) is pleased to announce that it has entered into a definitive
agreement with HNA Innovation Finance Group Co., Ltd. (“HNA”) for HNA to purchase a 51%
equity interest in Glencore’s petroleum products storage and logistics business for US$775
million, payable in cash upon closing, subject to customary closing adjustments (the
“Transaction”).

The Transaction is subject to certain regulatory approvals and closing conditions and is
expected to close during the second half of 2017.

The Transaction will result in a newly incorporated company, HG Storage International Ltd.
(“HG Storage”), which will consolidate Glencore’s existing petroleum products storage and
logistics businesses into a global portfolio of high-calibre assets. HG Storage will have an
established presence in major trading hubs and strategically important locations across
Europe, Africa and the Americas.

Upon closing, HG Storage will be governed by its own board of directors. HNA shall have the
right to appoint three directors to the board, alongside two Glencore-appointed directors. At
shareholder meetings Glencore and HNA representatives shall vote in proportion to their
shareholdings, subject to certain reserved matters.

In addition, and consistent with a mutual commitment to a successful long-term partnership,
Glencore and HNA have agreed to an initial three year lock-up period in respect of their
interests in HG Storage.

Commenting on the Transaction, Alex Beard, Head of Glencore Oil, said:
“We are pleased to be entering into a partnership with HNA to further develop our global
petroleum products storage and logistics business. HG Storage brings together Glencore’s
expertise in the petroleum products storage business and extensive market knowledge with
HNA’s global reach and strong position in Asia. HG Storage’s high quality assets are well
positioned to take advantage of the future opportunities we expect to be created by the strong
market fundamentals for the sector. We also look forward to exploring further potential
opportunities for cooperation with HNA in areas of mutual interest.”

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For further information please contact:

Investors
Martin Fewings               t: +41 41 709 2880     m: +41 79 737 5642      martin.fewings@glencore.com
Carlos Francisco Fernandez   t: +41 41 709 2369     m: +41 79 129 9195      carlos.fernandez@glencore.com
Media
Charles Watenphul            t: +41 41 709 2462     m: +41 79 904 3320      charles.watenphul@glencore.com
Pam Bell                     t: +44 20 7412 3471    m: +44 77 3031 9806     pam.bell@glencore.co.uk

www.glencore.com




Notes for Editors
Glencore
Glencore is one of the world’s largest global diversified natural resource companies and a major producer
and marketer of more than 90 commodities. The Group's operations comprise around 150 mining and
metallurgical sites, oil production assets and agricultural facilities.

With a strong footprint in both established and emerging regions for natural resources, Glencore's
industrial and marketing activities are supported by a global network of more than 90 offices located in
over 50 countries.

Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation,
oil and food processing sectors. We also provide financing, logistics and other services to producers and
consumers of commodities. Glencore's companies employ around 155,000 people, including contractors.

Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the
International Council on Mining and Metals. We are an active participant in the Extractive Industries
Transparency Initiative.

Glencore Oil
Glencore Oil is one of the world’s largest non-integrated oil suppliers by volume, handling more than
5million barrels of oil per day. It has sizeable shipping operations with a 78-vessel fleet.

Glencore Oil has over 1000 employees and more than 25 offices in over 20 countries. Its on-the-ground
presence provides unique market intelligence across areas of influence, leading to steady flow of
investment opportunities. Glencore Oil’s customers include major oil companies, national oil companies,
industrial clients and traders.

HNA
HNA Group was founded in 1993 and has developed from a local aviation transportation operator to a
global conglomerate, encompassing core divisions of aviation, hospitality, tourism, real estate, retail,
finance, logistics, technology, and shipbuilding.


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Disclaimer
The companies in which Glencore plc directly and indirectly has an interest are separate and distinct legal entities. In this
document, “Glencore”, “Glencore group” and “Group” are used for convenience only where references are made to Glencore plc
and its subsidiaries in general. These collective expressions are used for ease of reference only and do not imply any other
relationship between the companies. Likewise, the words “we”, “us” and “our” are also used to refer collectively to members of the
Group or to those who work for them. These expressions are also used where no useful purpose is served by identifying the
particular company or companies.




Sponsor
Absa Bank Limited (acting through its Corporate and Investment Banking Division)

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