Qatar is weighing an investment in Glencore as the world’s largest commodities trader canvasses potential cornerstone investors for its much-anticipated $60bn initial public offering in London and Hong Kong in the second quarter of the year.
Qatar prime minister, Sheikh Hamid Bin Jasim al Thani, told reporters in Doha that the country’s sovereign wealth fund planned to meet Glencore’s senior management and bankers this week to discuss a potential investment. “We are studying the matter at the moment,” he said.
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The discussions with the Qatar Investment Authority are part of Glencore’s strategy to talk to a “broader” group of investors, including sovereign wealth funds and UK-based institutional investors, according to people familiar with the trading house.
Glencore is expected to disclose plans for an IPO, that could value the group at slightly more than $60bn, in the next few weeks. But the trading house has not yet decided whether to proceed, according to a person familiar with the plans, and could still seek a merger with Xstrata, the London-listed miner in which it owns a 34 per cent stake.
Morgan Stanley, Citigroup and Credit Suisse are advising the trading house. Ivan Glasenberg, the South African chief executive of Glencore, is leading a two-day seminar for analysts in London on Monday and Tuesday as a step towards a potential listing.
The trading house has been working towards becoming a publicly listed company for at least a year and a half under a project codenamed “Galaxy”. It took a first step in late 2009, when it issued convertible bonds to investors including First Reserve, the US-based private equity group that focuses on natural resources; GIC, Singapore’s sovereign wealth fund; US-based fund managers BlackRock, Fidelity and Capital Group; and Zijin Mining Group, the Chinese miner.
The convertible bonds, which were priced in the summer of 2009, valued the company at $35bn.
Michael Rawlinson, a mining analysts at Liberum Capital, has put a more recent valuation on Glencore, suggesting it could be worth as much as $62bn.
Bankers say this estimate is in the range that management is looking at if the company goes public.
Many Glencore staff could be in line for large windfalls. In December last year, 485 employees owned Glencore shares, with the “key management” of 65 executives holding a 57.5 per cent stake in the commodities trader, according to bondholders’ prospectuses seen by the Financial Times.
Source: www.ft.com
Qatar prime minister, Sheikh Hamid Bin Jasim al Thani, told reporters in Doha that the country’s sovereign wealth fund planned to meet Glencore’s senior management and bankers this week to discuss a potential investment. “We are studying the matter at the moment,” he said.
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The discussions with the Qatar Investment Authority are part of Glencore’s strategy to talk to a “broader” group of investors, including sovereign wealth funds and UK-based institutional investors, according to people familiar with the trading house.
Glencore is expected to disclose plans for an IPO, that could value the group at slightly more than $60bn, in the next few weeks. But the trading house has not yet decided whether to proceed, according to a person familiar with the plans, and could still seek a merger with Xstrata, the London-listed miner in which it owns a 34 per cent stake.
Morgan Stanley, Citigroup and Credit Suisse are advising the trading house. Ivan Glasenberg, the South African chief executive of Glencore, is leading a two-day seminar for analysts in London on Monday and Tuesday as a step towards a potential listing.
The trading house has been working towards becoming a publicly listed company for at least a year and a half under a project codenamed “Galaxy”. It took a first step in late 2009, when it issued convertible bonds to investors including First Reserve, the US-based private equity group that focuses on natural resources; GIC, Singapore’s sovereign wealth fund; US-based fund managers BlackRock, Fidelity and Capital Group; and Zijin Mining Group, the Chinese miner.
The convertible bonds, which were priced in the summer of 2009, valued the company at $35bn.
Michael Rawlinson, a mining analysts at Liberum Capital, has put a more recent valuation on Glencore, suggesting it could be worth as much as $62bn.
Bankers say this estimate is in the range that management is looking at if the company goes public.
Many Glencore staff could be in line for large windfalls. In December last year, 485 employees owned Glencore shares, with the “key management” of 65 executives holding a 57.5 per cent stake in the commodities trader, according to bondholders’ prospectuses seen by the Financial Times.
Source: www.ft.com
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