Completion of the sale is conditional on receipt of certain regulatory approvals in Zambia and on the approval of the shareholders and board of directors of ZCCM, and is expected to occur within the next three months.
Mopani has been funded by Carlisa and other members of the Glencore group. On completion, $1.5bn of debt (transaction debt) will remain owed by Mopani to Glencore group creditors on the following terms:
After completion of the sale, Glencore will retain offtake rights in respect of Mopani’s copper production until the transaction debt has been repaid in full.
As ZCCM is the holder of 10% of the voting rights in Mopani, a subsidiary undertaking of Glencore plc, the transaction falls within the criteria set out in Listing Rule 11.1.10R. Accordingly, Glencore has obtained written confirmation from a sponsor that the terms of the transaction are fair and reasonable as far as Glencore shareholders are concerned.