Bloomberg
Glencore Xstrata, the global commodity trader and metals producer run by billionaire Ivan Glasenberg, plans to list on the JSE in the fourth quarter to reflect its growing business in Africa.
The company would apply to the JSE for a secondary listing while keeping the London Stock Exchange as the primary location of its stock trading, it said yesterday.
“Africa is an important and growing market for the group and South Africa has a strong institutional investor base,” it said.
Glencore took charge of coal, chrome and platinum mines in South Africa when it completed the £29 billion (R454bn) all-share purchase of Xstrata in May. A listing on the JSE would be a vote of confidence in the country, where companies including Lonmin and AngloGold Ashanti have been plagued by violent strikes.
Glencore Xstrata would be the fourth-biggest member of the JSE’s all share index with a market value of about £44bn based on yesterday’s market value and exchange rate. BHP Billiton, British American Tobacco and SABMiller are the three biggest companies in the index by market value.
Glencore Xstrata’s South African projects include the Goedgevonden thermal coal complex in Mpumalanga, the Helena underground chrome mine on the eastern limb of the Bushveld Complex, the Wonderkop ferrochrome plant in North West and the Eland platinum mine near Pretoria. It also owns a 24.5 percent stake in Lonmin.
Glasenberg was in no rush to decide what to do with the stake in the third-biggest platinum producer, he said yesterday. page 25