Glencore unit Carlisa Investments completes 90% stake sale in Mopani

(Alliance News) - Glencore PLC on Wednesday said its subsidiary Carlisa Investments Corp has ...

Alliance News 31 March, 2021 | 11:45AM
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(Alliance News) - Glencore PLC on Wednesday said its subsidiary Carlisa Investments Corp has completed the sale to ZCCM Investments Holdings PLC of its 90% interest in Mopani Copper Mines PLC.

Glencore holds 81% of the shares in Carlisa, which holds a 90% interest in Mopani, which operates the Mopani copper mine in Zambia. ZCCM - a mining and energy investment holding company - holds the remaining 10% interest in Mopani.

Back in January, the Swiss commodities trader said Carlisa's stake in Mopani will be sold for a nominal sum of USD1, as well as transaction debt of USD1.5 billion.

Glencore said it continues to retain offtake rights in respect of Mopani's production until the debt has been repaid in full.

The terms of the debt is that interest will be capitalised for the first three years after completion, after which will be payable quarterly at LIBOR +3.

The second term is that the principal outstanding under the transaction debt will be repayable under a dual mechanism, whereby 3% of gross revenue of Mopani from 2021 to 2023, 10% to 18% of revenue after the period, and 33% of earnings before interest, tax, depreciation and amortisation will be paid at the end of each quarter.

Glencore shares were trading 0.3% lower in London on Wednesday at 285.25 pence each, while in Johannesburg, the stock was down 0.6% at ZAR58.26 a share.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Glencore PLC 317.05 GBX -1.23

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