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Glencore To Buy Voting Shares Of Volcan Compañia Minera

Glencore (GLCNF.PK,GLNCY.PK,GLEN.L) said that it has concluded an agreement with certain shareholders of Volcan Compañia Minera S.A.A.pursuant to which Glencore has agreed to acquire 26.73% of the total class A common (voting) shares of Volcan at US$1.215 per class A common share for a total consideration of US$531 million.

Glencore has been a shareholder in Volcan since 2004. Glencore currently holds 18.11% of the total class A common shares of Volcan and 0.02% class B common shares reflecting an economic interest in Volcan of 7.68% (taking into account the class B common shares and excluding treasury shares).

Glencore intends to make an offer to all of Volcan's shareholders via a public tender offer or oferta pública de adquisición de acciones subject to the laws and regulations of the Republic of Peru. The offer will be for up to 48.19% of the total class A common shares of Volcan at an offer consideration of US$1.215 per class A common share. The Selling Shareholders have agreed to accept the Offer for all of their shares.

Following the closing of the Offer, depending on the level of acceptances, Glencore will hold between 44.84% and 66.30% of the total class A common shares and will have an economic interest in Volcan of between 18.98% and 28.07% (taking into account the class B common shares and excluding treasury shares).

The aggregate consideration payable by Glencore pursuant to the terms of the Offer will be between US$531 million and US$956 million, depending on the level of acceptances. The consideration will be payable in cash on the closing of the Offer and will be funded by Glencore out of existing cash resources. The transaction is in line with Glencore's financial policy.

Glencore expects to make the Offer to Volcan shareholders by no later than 27 October 2017 and the Offer is expected to complete in November/ December 2017.

by RTT Staff Writer

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