Doha, June 27 (QNA) - Qatar Holding LLC, a wholly-owned subsidiary of Qatar Investment Authority, announced Wednesday that it has informed Glencore, commodities giant, that whilst it sees merit in a combination of the Glencore and miner Xstrata, it is seeking improved merger terms.
In a press statement issued today, Qatar Holding believed that an exchange ratio of 3.25 new Glencore shares for every one existing Xstrata share would provide a more appropriate distribution of benefits of the merger whilst properly recognizing the intrinsic stand-alone value of Xstrata.
QH said that it has been advised in this matter by Lazard.
Qatar Holding is a global investment corporation and a preferred partner of choice for investors, financiers and other stakeholders.
In February, Glencore and Xstrata disclosed a merger of equals to create the world's fourth-largest mining company by market capitalization, based on a share-swap ratio of 2.8 new Glencore shares for every Xstrata share.
Since the merger was disclosed in February, Qatar has a build up its stake in Xstrata, making it the second-largest shareholder after Glencore, which owns a 34 per cent stake.
Glencore shareholders are due to vote on the deal on July 11 and Xstrata's shareholders are due to vote on the deal July 12. Based on how the deal is structured, the deal could be blocked if shareholders representing just over 16 per cent of Xstrata's share capital vote against the deal. Glencore isn't allowed to vote at Xstrata's shareholder meeting since it is involved in the deal.
It is envisaged that the already significant investment portfolio of Qatar Holding will continue to grow. Key investments of Qatar Holding include Agricultural Bank of China, Barclays plc, Canary Wharf Group (via Songbird Estates), Credit Suisse Group, Harrods Group, Hassad Food Company, Iberdrola SA, J Sainsbury plc, London Stock Exchange, Lagardere, Porsche, Qatar Exchange, Qatar Telecom, Qatar National Bank, Santander Brasil and Volkswagen AG. (QNA)