South Africa – Glencore announced on Monday that it intends to implement the divestment of its non-core 23.9% stake in Lonmin which it inherited through the acquisition of Xstrata in May 2013, by way of a capital distribution in specie paid out to shareholders out of Glencore’s capital contribution reserves.
The Lonmin distribution will enable shareholders to manage the investment in Lonmin for their own account.
The Lonmin distribution requires shareholder approval. If approved, shareholders will, subject to certain exclusions, receive their pro rata share of Glencore’s holding of 139 513 430 Lonmin shares.
Glencore has appointed a financial institution to conduct the sale of any Lonmin shares subject to the exclusions.
Glencore shareholders whose Lonmin shares are sold through the managed sale can expect to be sent the net cash proceeds of the sale on June, 9 2015 in the same manner and in the same currency as they receive cash distributions on Glencore shares.
The Lonmin distribution will not impact Glencore’s cash distribution programme, Glencore said in a statement.