24/05/2011 00:00 AST
Prince Alwaleed bin Talal, chairman of Kingdom Holding Company (KHC), and KHC have invested $400 million in Glencore International’s initial public offering (IPO).
This represents 3.6 percent of the value of Glencore’s IPO and the offering was substantially oversubscribed.
The unconditional trading of the company will commence on Tuesday (May 24).
Furthermore, the company will be added to the FTSE 100 index on Wednesday (May 25).
Prince Alwaleed said: “Investing in this leading company is an extension of Kingdom Holding’s continuous pursuit of solid and distinct investments.”
Ahmed Halawani, executive director of private equity and international investments at KHC, said: “With the global economic recovery gaining traction, we have a positive outlook toward commodities. We strongly believe that we are well positioned with a leader in the commodities business and a management with a proven track record. Glencore will prove to be a smart addition to our portfolio of companies.”
The deal was the result of following up closely the performance of Glencore International AG and management performance.
The decision of KHC and Prince Alwaleed to invest in Glencore International AG was based on the world’s leadership of Glencore in integrating producing and marketing of commodities that industries around the world need.
Glencore has three principal business groups: Metals and minerals, energy products and agricultural products.
The company has worldwide activities in the production, sourcing, processing, refining, transporting, storage, financing and supply of metals and minerals including aluminum, nickel, cobalt, zinc, copper, and lead. Glencore and its subsidiaries market crude oil and oil products globally as well as natural gas primarily in Europe and the US.
Glencore is one of the largest non-integrated oil suppliers by volume and handles the physical supply of some three percent of the world’s daily oil consumption.
In agriculture products, Glencore and its subsidiaries process, handle and market corn, barley, rice, oilseeds, meals, edible oils and biodiesel.
The company manages the three directly or indirectly by subsidiaries companies owned partially or completely by Glencore.
The company revenues for 2010 reached $145 billion.
Glencore employs directly and indirectly over 2,700 employees worldwide in some 50 offices across 40 countries, and in industrial operations the company directly and indirectly employs over 54,800 employees.
Glencore was valued after the offering up to $60 billion making the Swiss company potentially one of the largest stock market listings in history.
KHC investments extend all over the world to include, manufacturing, aviation, hotels, media, agriculture, real estate, travel and tourism, luxury retail, global fashion, and technology.
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