Glencore Xstrata Plc (GLEN), the global commodity trader and metals producer run by billionaire Ivan Glasenberg, plans to list on the Johannesburg Stock Exchange in the fourth quarter to reflect its growing business in Africa.
The company will apply to the JSE for a secondary listing while keeping the London Stock Exchange as the primary location of its stock trading, the Baar, Switzerland-based company said today in a statement.
“Africa is an important and growing market for the group and South Africa has a strong institutional investor base,” Glencore said in the statement.
Glencore took charge of coal, chrome and platinum mines in South Africa when it completed the $29 billion all-share purchase of Xstrata in May. A listing on the JSE would be a vote of confidence in a country where companies including Lonmin Plc (LMI) and AngloGold Ashanti Ltd. (ANG) have been plagued by strikes that last year turned violent.
Glencore Xstrata would be the fourth-biggest member of the FTSE/JSE Africa All-Share Index (JALSH) with a market value of about 44 billion pounds ($69 billion) based on today’s market value and exchange rate. BHP Billiton Plc, British American Tobacco Plc (BATS) and SABMiller Plc (SAB) are the three biggest companies in the index by market value, according to data compiled by Bloomberg.
Xstrata’s South African projects include the Goedgevonden thermal-coal complex in the Mpumalanga province, the Helena underground chrome mine on the eastern limb of the Bushveld Complex, the Wonderkop ferrochrome plant in the North West Province and the Eland platinum mine near Pretoria.
It also owns 24.5 percent of Lonmin Plc, a producer of platinum in South Africa whose Marikana mine was the site of some of the deadliest labor unrest since the end of apartheid during last year’s strikes.
Glencore Chief Executive Officer Ivan Glasenberg is in no rush to decide what to do with the stake, he said today. While platinum is viewed by the company as a “non-core” asset, Glencore will continue to review the Lonmin holding, he said at an investor day in London.
The combined group has interests in about 35 coal mines in Colombia, Africa and Australia, accounting for about 10 percent of global seaborne supplies of the fuel. It’s the third-biggest producer of mined copper and of nickel. It employs about 190,000 people in more than 50 countries across its industrial and trading divisions.
Glencore shares have traded in London and Hong Kong since it sold $10 billion of stock in an initial public offering in May 2011.
Peter Grauer, the chairman of Bloomberg LP, the parent of Bloomberg News, is a non-executive director of Glencore Xstrata.
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