Glencore Raises Optimum Stake to 23.9% as It Boosts Price Paid for Shares Q

Tue,Sep 6, 2011
By Jesse Riseborough

Glencore International Plc, the largest publicly traded commodities supplier, raised its stake in Optimum Coal Holdings (OPT) Ltd., buying shares at 12 percent above the price it proposed last week.

Glencore’s Piruto BV unit purchased 24.6 million shares on the market yesterday at 38 rand ($5.34) apiece, taking the Baar, Switzerland-based company’s stake to 23.9 percent, it said today in a statement. Glencore acquired 14.1 percent of Optimum on Aug. 29 and on Sept. 1 proposed a cash offer of 34 rand a share that valued the South African company at $1.2 billion.

Under takeover regulations, “if an offer is made by Glencore or any of its concert parties for the remaining shares in Optimum within a period of six months from the date of this announcement, the offer consideration will not be lower than 38 rand per share,” according to the statement.

Optimum Coal is South Africa’s fourth-largest coal exporter and owns mines and port capacity. Glencore said last week it had secured agreements that may expand its holding to 43.5 percent.

Glencore gained 2.3 percent to 385.2 pence at the 4:30 p.m. close in London trading. Optimum fell 2.6 percent to 37.01 rand in Johannesburg. An offer of 38 rand a share would value the company at about $1.34 billion.

(sourced Bloomberg)