Glencore buys up more of Mutanda and Katanga

Glencore announced on Monday that it had purchased from subsidiaries of Fleurette Properties that group's remaining 31% stake in Mutanda Mining, and an approximate 10.25% stake in Katanga Mining.

The FTSE 100 firm said consideration for the Mutanda shares was $922m, and for the Katanga shares it was $38m.

It said it will offset against the cash consideration payable to Fleurette, loans owing to the Glencore group by Fleurette and its affiliates, and secured over the Mutanda shares, amounting to $556m - of which $120m comprises accrued interest.

In addition, Glencore said it acquired shareholder loans owed to the Fleurette group by Mutanda Mining in the amount of $130m

“Accordingly, the aggregate cash consideration payable by the Glencore group in respect of the transactions is $534m,” the group’s board confirmed in a statement.

“In addition, Glencore has acquired a further 15,325,000 shares in Katanga Mining, corresponding to an approximate 0.8% stake, which were held as the security for a loan provided to Ruwenzori, a member of the Fleurette group, in connection with Ruwenzori's acquisition of 25,000,000 shares in Nikanor which were issued as part of a private placement,” it also explained.

“Nikanor subsequently merged with Katanga and the shares were exchanged for shares in Katanga.”

Glencore now owns 100% of the shares in Mutanda and approximately 86.33% of the shares in Katanga.