It's over.......people should move on.Not sure why some here are expecting an osc intervention/investigation or even contemmplating some legal action agianst Glencore. Do you really believe that Glencore hasn't thought about this all the way through or even calculated the legal ramifications of their actions? Investors here should suck it up, smarten up and accept what has transpired, there's probably not much that could be done. You guys were WARNED many times over by many people here about the possibility things might go sour over more than a year ago. So you had plenty of time to think about the situation, reflect on it AND make a intelligent, calculated decision based on the level of risks involved. If you chose to ignore those warnings, there is no one else but YOURSELVES to blame for a bad decision to stay invested in a potentialy volatile investment, not Glecore, not Katanga nor the drc, the OSC or anyone else.
As topdop has stated in his "Rights Offering: why now and not in 2021?", this was done for several reasons but the main one being that the enormous crushing debt was unsustainable and not manageable anymore. It's one thing to try to run a company with a 10B US debt load when times are good and your base commodities are rising but completely another when attempting to do it when your primary has collapsed and revenues fall way short. Not sure why minority/retail investors thought that this was going to end well for them?
Of course there are a couple of OTHER reasons why Glencore is doing this now AND how they are going about it. This is essentially a debt for equity swap that many have been warning for a very longtime.....now it is here. Imo, Glencore will probably andeventually offload their stake in Katanga to the Chinese BUT they have to make it attractive to do so. Unfortunately, that means getting rid of all if not most of the debt QUICKLY, which is only possible through a debt for equity swap. Sadly again, for ANY CURRENT holder, they will almost be guranteed to be completely wiped out.
By my calculations, when it's all over and done, Katanga will have anywhere between 45B-60B shares outstanding with about 2B US left in longterm debt. Because this resulting share structure isn't feasable, optimal or favorable.....they will have no choice but to consolidate the shares probably at the rate of at least 40 to1 or more (could go as high as 100to1). This was ALL baked in when Glencore conceived of this plan......probably many months ago. Therefore, this will result in Katanga being at least a $5 (but could anywhere from $5-10) stock with anywhere from ~500M to ~1B s/o and about 2B in debt. At this point and proably within two years they will either take the company private or sellout to the Chinese. The big winners here are probably the end buyers (most likely Chinese), as Glencore comes out of this more or less unscathed, fresh as a daisy and as happy as a donkey. The DRC doesn't give a c*ap who owns it or what happens as long as the money keeps flowing into their pockets. The only BIG losers here are the minority retail/institutional holders who currently hold the stock.
Like the title says...i suggest people move on from this as there isnt much you can do and if you dwell on this too long, you will only create personal (health or otherwise) problems which might be even worse. Take it as part of the pitfalls or dangers of investing and as a life lesson to avoid future situations like this one.
Good luck to all..........