JOHANNESBURG (miningweekly.com) – Diversified mining and marketing company Glencore is taking steps to raise $2.5-billion worth of equity capital by placing shares with existing and new institutional shareholders as well as directors and employees.
The company said in a Johannesburg Stock Exchange News Service announcement that the new shares being issued, which represented 9.99% of the company's issued ordinary share capital, were expected to be admitted on September 21.
Glencore is raising the $2.5-billion as part of $10-billion worth of measures to cut debt and safeguard its credit rating.
The issue of 1.3-billion new shares at Tuesday’s London closing price of £1.28 a share adds up to some $2.57-billion in new capital.
Glencore has also suspended its dividend, pledged to cut spending, sell assets and temporarily halt production at two copper mines in Africa while it invests in their upgrading.