During the first half of 2015, Glencore plc said it will divest its “non-core” 23.9% stake in Lonmin plc, which it inherited through the acquisition of Xstrata plc in May 2013. The company is proposing the Lonmin divestment by way of a distribution in specie to Glencore shareholders. Glencore believes that a straightforward market disposal of the Lonmin stake at this time would not be in the best interests of its shareholders.
“Glencore’s investment philosophy is to hold investments in production assets in the commodities in which we trade and so we have always regarded the stake in Lonmin as non-core,” said Ivan Glasenberg, CEO of Glencore. “As we do not trade platinum and have no special insight into the market, we believe that it is better to leave to our shareholders the decision as to how to manage the Lonmin shares.”
The distribution will require shareholder approval and the necessary resolution will be put to shareholders at Glencore’s Annual General Meeting on May 7.
