Wrap Text
GLN: Signed Contract To Sell Underlying Stake Of 73%
In Mopani.
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
LEI: 2138002658CPO9NBH955
Baar, Switzerland
19 January 2021
Signed contract to sell underlying stake of 73% in Mopani in $1.5b
transaction
Glencore today announces that its subsidiary Carlisa Investments Corp. (“Carlisa”), in which
Glencore holds 81.2% of the shares, has signed an agreement with ZCCM Investments Holding plc
(“ZCCM”) to transfer its 90% interest in Mopani Copper Mines plc (“Mopani”) to ZCCM, the owner
of the remaining 10% interest in Mopani, for US$1 and the Transaction Debt (as defined below).
Completion of the sale is conditional on receipt of certain regulatory approvals in Zambia and
on the approval of the shareholders and board of directors of ZCCM, and is expected to occur
within the next three months.
Mopani has been funded by borrowings from Carlisa and other members of the Glencore group. On
completion, US$1.5 billion of debt (the “Transaction Debt”) will remain owed by Mopani to
Glencore group creditors on the following terms:
a. interest under the Transaction Debt will be capitalised for the first three years after
completion, and thereafter will be payable quarterly at LIBOR + 3% (subject to a switch
to an equivalent interest rate based on SOFR); and
b. principal outstanding under the Transaction Debt will be repayable under a dual
mechanism whereby:
i. 3% of gross revenue of the Mopani group from 2021-2023 (inclusive), and 10-
17.5% of gross revenue of the Mopani group thereafter; and
ii. 33.3% of EBITDA less tax, changes in working capital, capital expenditure,
royalty payments and interest and principal (calculated under the first
mechanism) payments in respect of Transaction Debt,
is at the end of each quarter required to be paid. Repayment of principal (together
with accrued interest) may additionally be required in the event of an occurrence of
certain other early prepayment events, including certain change of control events in
respect of Mopani.
After completion of the sale, Glencore will retain offtake rights in respect of Mopani’s copper
production until the Transaction Debt has been repaid in full.
As ZCCM is the holder of 10% of the voting rights in Mopani, a subsidiary undertaking of Glencore
plc, the transaction falls within the criteria set out in Listing Rule 11.1.10R. Accordingly,
Glencore has obtained written confirmation from a sponsor that the terms of the transaction are
fair and reasonable as far as Glencore shareholders are concerned.
For further information please contact:
Investors
Martin Fewings t: +41 41 709 m: +41 79 737 5642 martin.fewings@glencore.com
2880
Media
Charles Watenphul t: +41 41 709 24 m: +41 79 904 33 charles.watenphul@glencore.com
62 20
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
Notes for Editors
Glencore is one of the world’s largest global diversified natural resource companies and a
major producer and marketer of more than 60 responsibly-sourced commodities that advance
everyday life. The Group's operations comprise around 150 mining and metallurgical sites and
oil production assets.
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With a strong footprint in over 35 countries in both established and emerging regions for
natural resources, Glencore's industrial activities are supported by a global network of more
than 30 marketing offices. Glencore's customers are industrial consumers, such as those in
the automotive, steel, power generation, battery manufacturing and oil sectors. We also provide
financing, logistics and other services to producers and consumers of commodities. Glencore's
companies employ around 160,000 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. Our ambition is to be a net zero total emissions company
by 2050.
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Disclaimer
The companies in which Glencore plc directly and indirectly has an interest are separate and
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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
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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)
Date: 19-01-2021 10:54:00
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