Glencore acquires 19% in Kazzinc, raising its stake to 69%

Mariyam Zhumadil, CFAOctober 12, 2012

Yesterday, Glencore announced the completion of the purchase of an 18.91% stake in Kazzinc from Verny Investments.

The consideration included Glencore's 176.7mn newly issued shares and $400mn cash.

On September 24, the parties disclosed the revised terms of the deal whereby Glencore agreed to buy a smaller stake in the zinc producer and the share of the cash component in the total purchase consideration has been lowered. Following the deal closure, Verny Investments, holds a 2.49% stake in Glencore, we estimate.