Not sure why HH, it's been widely known for some time that Glencore is in Capital preservation and debt reduction mode, having been hammered by the commodities downturn.
They have totally reassessed what their core business strategy and investment criteria is, in response to the significant downturn in their earnings long with a very stretched balance sheet from a debt burden perspective.
They also are much more focused on owning tier 1 assets, AVB is simply way too small to be a core fit for their current strategy.
However, the mere fact that they continue to own AVB against this backdrop is interesting to me, and given that they didn't participate in the big Cap raising should tell you where they were at, happy to be diluted but happy to still own with much bigger issues on their plate. In the event they choose to sell down in the future, then I am sure that the other big three shareholders and or a new Institutional holder would happily take up their holding, given the positive outlook for AVB over the next 5 years and beyond.
It is a good point you make, I am just sharing my knowledge of Glencore and their situation.
AVB Price at posting:
7.4¢ Sentiment: Buy Disclosure: Held
