Nyrstar : Nyrstar reaches settlement with Glencore on Commodity Grade Off-take
Agreement and shareholding
16 April 2013
Nyrstar today announced that it has reached a negotiated settlement with
Glencore International AG ("Glencore") in relation to its Commodity Grade
Off-take Agreement (the "Off-Take Agreement") for the sale and marketing of
commodity grade zinc metal produced by Nyrstar within the European Union, and
Glencore's 7.79% shareholding in Nyrstar. This follows the requirement for
Glencore to end these aspects of its relationship with Nyrstar as part of the
remedy package agreed by the European Commission in relation to Glencore's
proposed merger with Xstrata Plc ("Xstrata").
Summarised, under the terms of the settlement the following has been agreed:
*By 31 December 2013 Nyrstar will cease to sell to Glencore commodity grade
zinc metal produced at Nyrstar's smelters located within the European
Union (Auby, Balen/Overpelt and Budel).
*With respect to the above, Glencore has agreed to pay Nyrstar a
termination fee of EUR 44.9 million.
*The sale of commodity grade zinc and lead produced from Nyrstar's smelters
outside of the European Union (Clarksville, Hobart and Port Pirie) will
continue as before under the Off-take Agreement.
*Nyrstar has agreed to acquire Glencore's entire shareholding of 7.79% of
common shares for EUR 3.39 per share (a discount of approximately 10% to
the 5-day volume weighted average price, and 5% to the closing share
price, of Nyrstar shares on 15 April 2013), for a total cash consideration
of EUR 44.9 million.
Nyrstar will hold the acquired shares as treasury stock and will look to place
the shares with suitable investors over time.
The above settlement will become final upon the successful completion of
Glencore's merger with Xstrata, which is expected to be in approximately two
Nyrstar is in the process of determining the most suitable channel(s) to
market and sell the commodity grade zinc metal produced at its European
smelters. Options available to Nyrstar include bringing the marketing and
sales of this volume in-house, tendering this volume to third parties or
entering into partnering arrangements, with numerous enquiries having been
made on the availability of this metal over the past months. Nyrstar will
provide an update on the outcome of this process in due course.
Commenting on the settlement, Roland Junck, Nyrstar's Chief Executive Officer
"The settlement reached between Nyrstar and Glencore represents a positive
outcome for both parties. Nyrstar has been adequately compensated for the
amendment to its Commodity Grade Off-take Agreement and at the same time has
been able to secure Glencore's shareholding, which will allow us to place
those shares with suitable investors over a timeframe which Nyrstar will
determine. We will continue to have a commercial relationship with Glencore
through the sale of our commodity grade zinc and lead from our non-European
smelters and through the sale of concentrates between the two companies.
We are reviewing the options available to us with respect to the marketing and
sale of the commodity grade zinc metal produced at our European smelters. We
have entered into discussions with a number of interested parties to
potentially tender the volume or enter into partnering arrangements. We are
also reassessing the value of bringing this function back in-house as the
volume also provides a unique opportunity for us to create further value by
leveraging our commercial acumen, market insight and scale."
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Nyrstar is an integrated mining and metals business, with market leading
positions in zinc and lead, and growing positions in other base and precious
metals; essential resources that are fuelling the rapid urbanisation and
industrialisation of our changing world. Nyrstar has mining, smelting, and
other operations located in Europe, the Americas, China and Australia and
employs over 7,000 people. Nyrstar is incorporated in Belgium and has its
corporate office in Switzerland. Nyrstar is listed on NYSE Euronext Brussels
under the symbol NYR. For further information please visit the Nyrstar
For further information contact:
Jaideep Thatai Manager Investor Relations T: +41 44 745 8103 M: +41 79
722 3089 email@example.com
Sheela Pawar de Groot Group Manager Corporate Communications T: +41 44 745
8154 M: +41 79 722 6917 firstname.lastname@example.org
Geert Lambrechts Manager Corporate Communications T: +32 14 449 646 M:
+32 473 637 892 email@example.com
The full press release can be downloaded from the following link:
Press Release (French)
Press Release (Dutch)
Press Release (English)
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information contained therein.
Source: Nyrstar via Thomson Reuters ONE
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