Glencore’s shares slide after subsidiaries’ bank accounts are frozen
Glencore’s share price fell 6% to R60.30 on Monday morning as the market reacted to the weekend news that bank accounts of its subsidiaries in the Democratic Republic of the Congo (DRC) had nearly $3bn frozen by a court order.Glencore issued a statement on Monday morning confirming that Israeli businessman Dan Gertler had applied to a DRC court to have $2.28bn held in a bank account of its subsidiary Kamoto Copper Company (KCC) and $695m held by its subsidiary Mutanda Mining Sarl frozen."Glencore denies that Mutanda and KCC are in breach of any of their obligations under their respective agreements with [Gertler-owned] Ventora and Africa Horizons Investments Limited (AHIL) and also entirely rejects Ventora’s calculation of the value of the future royalties allegedly owed to Ventora. Mutanda and KCC will vigorously contest the freezing order and any subsequent proceedings," Glencore said in Monday’s statement.The legal dispute is over Gertler claiming he has royalty rights to KCC’s o...
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