Azerbaijan, Baku, Sep. 25 / Trend E. Kosolapova/
Glencore International company will acquire 18.91 percent of Kazakh metallurgical company Kazzinc, increasing its share in Kazzinc to 69.61 percent, Glencore reported on Tuesday.
Earlier Glencore announced that it had conditionally agreed to acquire up to 48.73 percent of Kazzinc from Verny Capital. The original agreements have now been terminated.
"Glencore and Verny Capital have entered into a new single share purchase agreement pursuant to which Glencore has agreed to acquire 18.91 percent of Kazzinc," the company said.
New agreement remains subject to a number of condition precedents, including approvals from the Kazakh Government.
The consideration payable on closing pursuant to the New Agreement must involve the issue of Glencore shares and, in certain circumstances, a cash component. The consideration payable is linked to the prevailing Glencore share price and will involve the issue of over 176.74 million Glencore shares and may involve additional consideration including a cash component and/or the issue of additional Glencore shares, with any such additional consideration being subject to a cap in value of $400 million and with the mix being in the sole discretion of Glencore. The amount of any additional consideration, subject to the cap, will be calculated as the difference between the value of the 176.74 Glencore shares around closing and $1.395 billion if the value of the shares were to be lower.
Closing is expected to take place before the end of December 2012.
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