Russia’s En+ to issue new shares for Glencore after IPO, prospectus shows
Moscow — Russia’s En+ Group, which manages tycoon Oleg Deripaska’s aluminium and hydropower businesses, plans to issue new shares to Glencore after it completes its planned initial public offering, the IPO prospectus shows. The new share issue will be part of a transaction whereby global commodities trader Glencore will swap its 8.75% stake in Russian aluminium giant Rusal — in which En+ holds a 48.13% stake — for shares in En+ itself. It is not clear if, and to what extent, the issue of new shares may dilute existing shareholdings in En+. Details of how the transaction would be structured were not available in the IPO prospectus, and En+ declined to comment. The issue will be by closed subscription. Glencore’s share swap is separate to En+’s planned IPO, through which En+ expects to raise a total of $1.5bn via new and existing shares, including in the form of global depositary receipts. The swap with Glencore will occur after En+ completes its IPO, En+ said this month. As a result ...
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