glencore

Interesting article re Glencore - massive player in the commodities markets. They very recently invested into Core Mining. I have included a bit on Glencore at the end of the section. These guys are very close to Sundance infrastructure!


Glencore May Get $61 Billion Value in London, Hong Kong IPO
By Jesse Riseborough and Zijing Wu - May 4, 2011 5:21 PM ET

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Glencore International AG Chief Executive Officer Ivan Glasenberg. Source: Glencore International Plc via Bloomberg


The headquarters of Glencore International AG stand in Baar, Switzerland. Photographer: Gianluca Colla/Bloomberg


The trader of commodities including coal, oil and metals plans to sell about $7.9 billion of new stock while existing holders may sell an additional $2.1 billion in shares for tax purposes and to repay a tranche of loans. Source: Glencore International AG via Bloomberg

Glencore International AG, planning the world?s biggest initial public offering this year, said the share sale in London and Hong Kong this month may value the company at about $61 billion.

Glencore plans to sell shares at 480 pence ($7.90) to 580 pence each, the Baar, Switzerland-based company said today in a statement. The mid-point of the range indicates a market value of $61 billion upon listing, with final pricing due about May 19. Glencore expects the shares to trade in London on May 24.

The company, ending more than three decades of operating as a closely held partnership, may raise as much as $10 billion in the sale, making it the largest IPO since General Motors Co. sold stock in November. So-called cornerstone investors agreed to buy about 31 percent of the shares on offer, Glencore said.

The sale has ?one of the largest cornerstone investor participations ever achieved for an IPO,? Chief Executive Officer Ivan Glasenberg said in the statement. ?We are pleased by the strong investor interest.?

As much as 13.9 percent of the company will be publicly tradable after the IPO, according to a sale document sent to potential investors and obtained by Bloomberg News.

Marc Rich

Glencore changed its name from Marc Rich & Co. after the management bought out former fugitive U.S. financier Marc Rich in 1994. Four analyst reports last month from banks advising on the IPO estimated the company?s value at an average range of $52.3 billion to $68.7 billion.

The trader of commodities including coal, oil and metals plans to sell about $7.9 billion of new stock while existing holders may sell an additional $2.1 billion in shares for tax purposes and to repay a tranche of loans. Glencore said last month it plans to use the funds for expansion and acquisitions.

About Core Mining:

Core Mining is a private company focused on the exploration and development of two potential
world class iron ore projects in Central Africa.

Core Mining owns exploration licences for the world class Avima iron ore deposit in the Republic of
Congo and the Kango iron ore deposit in the Republic of Gabon and is focused on fast tracking the
development of these projects through to production.

The Avima Project is located in the north west of the Republic of Congo (Brazzaville) and the
Company is targeting a multibillion tonne resource. Drilling to date has indicated high grade
mineralisation of up to 69.75% Fe to a depth of over 300m. Additionally, initial drill work has
indicated significant DSO potential.