Glencore to acquire Botswana, South African Chevron assets for $973m

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glencoreGlencore has confirmed that the company has entered into an agreement with Off The Shelf Investments Fifty Six (RF) Proprietary Limited –OTS to acquire shareholdings in Chevron South Africa and Chevron Botswana for $973m.

The shareholdings to be acquired include a 75% stake in Chevron South Africa Proprietary Limited (Chevron SA) and certain related interests and the entire issued share capital of Chevron Botswana Proprietary Limited (Chevron Botswana) following the closing of OTS’s exercise of its pre-emptive right to acquire the Assets from the Chevron group.

During its acquisition process, Glencore will be supporting OTS as their technical and financial partner. The Assets comprise the interests of the Chevron group in its manufacturing, retail and industrial supply business in Botswana and South Africa.

Glencore believes that the Assets provide an attractive downstream opportunity for its oil business. The acquisition will also include undertakings as to retention of the local management team and workforce. The consideration will be payable in cash on closing and will be funded from Glencore’s own cash resources.

Glencore intends to manage its overall oil asset portfolio to ensure that, including this transaction, net additional capital investment is limited to less than $500m over the next 12 months, consistent with Glencore’s conservative financial framework targets.

FYI from http://www.stockmarketwire.com/article/5695170/Glencore-to-acquire-SA-Botswana-assets-for-973m.html

1 month ago