Mick Davis, chief executive officer of Xstrata Plc, sold $10.7 million of option shares due to expire in February after Glencore International Plc won approval from the European Union and shareholders to acquire the company.
Davis sold 661,590 shares at 10.22 pounds ($16.30) each on Nov. 27, the biggest thermal coal exporter said in a statement today. He paid 1.82 pounds apiece for the shares under an option plan, granted in February 2003, Xstrata said. Davis made a profit of 5.5 million pounds from the sale before U.K. tax.
Glencore, the world’s biggest publicly traded commodities supplier, and Xstrata said last week they expect the plan to create the fourth-largest mining company to be completed by year end. Davis was prevented from exercising his options since November 2011, according to the statement by Zug, Switzerland based Xstrata.
“This prohibited period ended following the conclusion of the Xstrata shareholder meetings on Tuesday, 20 November 2012 and the announcement by the European Commission on Thursday, 22 November 2012 that it has cleared under the E.U. Merger Regulation the proposed acquisition of Xstrata by Glencore,” Xstrata said in the filing.