Mitsui eyes stake in mining giant
Sunday 24 October 2010
Metalloinvest, run by Arsenal FC's billionaire shareholder Alisher Usmanov, is in talks to sell a stake in the mining giant to Japan's Mitsui ahead of a London listing next year.
The Moscow-based group wants to secure Mitsui as a cornerstone investor so as to provide "a benchmark" for the value of the flotation, according to a source close to Metalloinvest. For example, selling a 10 per cent stake at $1.5bn-to-$2bn would value the group at $15bn-to-$20bn – though some experts believe that Metalloinvest could be valued as high as $30bn when it joins the London Stock Exchange in 2011.
Such valuations would comfortably put Metalloinvest in the FTSE 100 index of biggest companies, where it would have access to major sources of capital. The sale of a minority stake to such a huge conglomerate as Mitsui would provide investors with confidence that Metalloinvest is worth the high valuations mooted.
The deal is expected to give Mitsui rights to be the agent to sell Metalloinvest's products, such as iron ore and steel, into Asia. Mitsui is being advised by Lazard, while Bank of America Merrill Lynch is acting for Metalloinvest.
The top-secret talks have been going on for around a year, according to two sources. It is hoped a deal will be struck by Christmas. "This has taken a long time, but that's the typical Japanese way of doing things. They're cautious," said one source. "In theory, this establishes a pretty good benchmark for Metalloinvest's flotation, and they are very financially driven guys."
Mr Usmanov is best known in the UK as one of the biggest shareholders in Arsenal, and the ongoing speculation that his Red and White Holdings vehicle will one day launch a takeover bid for the north-London club.
Uzbekistan-born Mr Usmanov also has a major stake in Mail.ru, the Russian social-media group that has a 2.38 per cent shareholding in the Facebook empire. Mail.ru also plans to list in London – by the end of this year, against probably the second quarter of 2011 for Metalloinvest – in a move expected to value the company at up to $5bn.
The Siberian Coal Energy Company (Suek) had planned to float in London this year but has delayed to 2011. The firm is understood to be on the look-out for potential non-executive directors for when it does decide to list.
London's listing market had a boost on Friday when online betting exchange Betfair announced it would make its stock exchange debut at £13 a share, towards the top end of expectations. This values Betfair at £1.39bn and raises more than £200m for shareholders.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 UK weather: Snow to fall during coming week with sub-zero temperatures to last until early February
- 4 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
UK weather: Snow to fall during coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Ellen DeGeneres leads Johnny Depp, Gwyneth Paltrow and Paul Bettany in revealing game of Never Have I Ever
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...