Glencore mulls gold spin-off after float
Sunday 15 May 2011
Glencore International, the commodities trader which is heading to the London Stock Exchange next week with a $60bn flotation, is looking again at spinning off its gold assets.
Sources close to the mining giant said separating its gold assets, which mainly consist of the biggest gold mine in Kazakhstan, is one option being considered after the float.
"Glencore will re-examine spinning off the gold to get the maximum multiple. Gold prices are at a high and the assets could be worth as much as $5bn," said one banker.
The Kazzinc gold unit, in which it holds a 51 per cent stake, produces almost as much gold as recently-listed African Barrick Gold. But, any plans may be challenged by opposition leaders in Kazakhstan who are claiming that the privatisation of Kazzinc was "illegal".
Demand for shares was said to be strong yesterday with the offer several times over-subscribed and advisers hope to close the offer earlier than planned this week. The shares are likely to be priced at lower-to-mid end of the 480p to 580p range reflecting the volatility in the commodities markets.
Glencore's chief executive, Ivan Glasenberg, has tried to dampen fears it will be hit by the recent rout in the commodities market telling investors in Hong Kong, where it is also listing, that falls reflected market "froth". After the IPO, Glencore will also look to expand its grains and oil businesses.
- 1 Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 2 Disney announces new female-led film Moana
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Video: Boxer Vido Loncar brutally assaults referee following defeat
Ottawa shooting: Canadian soldier dies after being shot at National War Memorial with one gunman killed inside parliament
Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
Isis releases first video showing stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Support for EU membership 'at highest level since 1991 with most Brits wanting to stay in'
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...