November 15, 2024
one hundred US dollars notes.

one hundred US dollars notes.

Qatar’s sovereign wealth fund is selling a stake worth as much as 812 million pounds ($1.1 billion) in Glencore Plc, cashing in after strong commodity prices spurred a rally in the stock, and leaving former Chief Executive Officer Ivan Glasenberg as the company’s top investor.

Glencore shares have nearly doubled in the past 12 months as the company reported record earnings, delivered bumper shareholder returns and said it expected long-running corruption probes by U.S., U.K. and Brazilian authorities to be resolved this year. The stock is close to touching its initial-public offering price of 5.30 pounds for the first time since the week of its flotation in 2011.

QIA Holdings LLC, which owns a 9% stake in Glencore, is offering 158.8 million shares, or about 13% of its holding, according to terms seen by Bloomberg. The shares are being marketed at 4.97 pounds, a discount to Wednesday’s closing price of 5.112 pounds each, the terms showed.

The sale comes after two other large Glencore shareholders reduced their stakes this year. Former executives Aristotelis Mistakidis and Daniel Mate, who were part of the cohort that became billionaires overnight thanks to Glencore’s IPO in 2011, sold down their holdings in the past two months.

Nearly all Glencore’s most important commodities are trading at or near record levels. Markets from metals to oil and gas have been upended by the war in Ukraine as big corporates withdraw from Russia, lenders pull back from financing deals and the threat of new sanctions deters buyers.

The bulk of the Qatari fund’s stake in Glencore dates back to the commodity trader’s acquisition of Xstrata in 2013. In the run-up to that deal, Qatar built a large stake in Xstrata and then forced Glencore to sweeten its terms.

Since then, Qatar has been Glencore’s largest shareholder alongside Glasenberg. Qatar and Glencore have invested side-by-side, for example teaming up in 2016 to buy a stake in Russia’s state energy giant Rosneft PJSC.

Goldman Sachs Group Inc. and Jefferies are arranging the share sale.

74 thoughts on “Qatar Sovereign Wealth Fund Cuts Glencore stake after rally

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