TIDMGLEN
RNS Number : 9402S
Glencore PLC
06 October 2017
Glencore plc
Baar, Switzerland
6 October 2017
Proposed acquisition of shareholdings in Chevron South Africa
and Chevron Botswana
Glencore has entered into an agreement with Off The Shelf
Investments Fifty Six (RF) Proprietary Limited (OTS) to acquire
from OTS (i) a 75% stake in Chevron South Africa Proprietary
Limited (Chevron SA) and certain related interests and (ii) the
entire issued share capital of Chevron Botswana Proprietary Limited
(Chevron Botswana) (together the Assets and these companies
together the Companies) following closing of OTS's exercise of its
pre-emptive right to acquire the Assets from the Chevron group.
During its acquisition process Glencore will be supporting OTS as
their technical and financial partner. The aggregate consideration
(subject to adjustment for debt and working capital of the
Companies at closing) is US$973 million.
The Assets comprise the interests of the Chevron group in its
manufacturing, retail and industrial supply business in South
Africa and Botswana. Glencore believes that the Assets provide an
attractive downstream opportunity for its oil business. The
acquisition will include undertakings as to retention of the local
management team and workforce.
The consideration will be payable in cash on closing and will be
funded from Glencore's own cash resources. Glencore intends to
manage its overall oil asset portfolio to ensure that, including
this transaction, net additional capital investment is limited to
less than US$500m over the next 12 months, consistent with
Glencore's conservative financial framework targets.
The transaction is conditional on the receipt of all necessary
regulatory approvals by OTS and Glencore and is expected to close
in mid-2018. A further announcement will be made in due course.
For further information please contact:
Investors
Martin Fewings t: +41 41 m: +41 79 martin.fewings@glencore.com
709 2880 737 5642
Ash Lazenby t: +41 41 m: +41 79 ash.lazenby@glencore.com
709 2714 543 3804
Media
Charles Watenphul t: +41 41 m: +41 79 charles.watenphul@glencore.com
709 2462 904 3320
www.glencore.com
Glencore LEI: 2138002658CPO9NBH955
Additional Information
Outline summary of the Companies' businesses
-- Medium complexity refinery in Cape Town with a crude processing capacity of 100 kbd
-- A finished lubricants blend plant and base oil terminal in Durban
-- Broad network of coastal shipping, depots and pipelines with
significant crude delivery and storage infrastructure at Saldanha
Bay and Cape Town Harbour
-- The business is the second largest supplier of petroleum
products in South Africa with a market share of 19%
-- The South African retail network comprises 820 sites, which
are predominately owned by the operators. There are another 30
retail sites in Botswana. Retail accounts for over 55% of the
volumes of the business
-- Provides oil products to large customers in power, mining,
transportation and agriculture through several licensed wholesalers
and resellers, which accounts for the balance of 45% of
volumes.
Assets and profits
Gross assets the subject of the transaction are ZAR 11,399
million and BWP 157 million (together US$844 million) as at 31
December 2016, as derived from the accounts of the Companies for
the year ended on that date (together the Accounts).
Profits (being the profit before tax) attributable to the Assets
being acquired are ZAR 1,860 million and BWP 32 million (together
US$138 million), being that profit for the year ended 31 December
2016 as derived from the Accounts.
In this announcement:
-- the exchange rates used above are those in effect at 31
December 2016, being ZAR13.74 to one US dollar and BWP10.69 to one
US dollar and the figures take account of 75% of Chevron SA and
100% of Chevron Botswana. Applying the rates applicable at the
close of business yesterday of ZAR 13.68: USD1 and BWP 10.36: US$1,
the dollar values in 1. and 2. above are US$848million for gross
assets and US$139million for profits
-- BWP means Botswanan Pula
-- ZAR means South African Rand.
Glencore
Glencore is one of the world's largest global diversified
natural resource companies and a major producer and marketer of
more than 90 commodities. The Group's operations comprise around
150 mining and metallurgical sites, oil production assets and
agricultural facilities.
With a strong footprint in both established and emerging regions
for natural resources, Glencore's industrial and marketing
activities are supported by a global network of more than 90
offices located in over 50 countries.
Glencore's customers are industrial consumers, such as those in
the automotive, steel, power generation, oil and food processing
sectors. We also provide financing, logistics and other services to
producers and consumers of commodities. Glencore's companies employ
around 155,000 people, including contractors.
Glencore is proud to be a member of the Voluntary Principles on
Security and Human Rights and the International Council on Mining
and Metals. We are an active participant in the Extractive
Industries Transparency Initiative.
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Disclaimer
The companies in which Glencore plc directly and indirectly has
an interest are separate and distinct legal entities. In this
document, "Glencore", "Glencore group" and "Group" are used for
convenience only where references are made to Glencore plc and its
subsidiaries in general. These collective expressions are used for
ease of reference only and do not imply any other relationship
between the companies. Likewise, the words "we", "us" and "our" are
also used to refer collectively to members of the Group or to those
who work for them. These expressions are also used where no useful
purpose is served by identifying the particular company or
companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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October 06, 2017 05:48 ET (09:48 GMT)
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