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Glencore moves to raise $2.5bn

25th September 2015

By: Martin Creamer

Creamer Media Editor

  

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Diversified mining and marketing company Glencore is taking steps to raise $2.5- billion in equity capital by placing shares with existing and new institutional shareholders as well as directors and employees.

The company said in a JSE News Service announcement that the new shares being issued, which represented9.99% 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.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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