Post by
schocor on Feb 01, 2023 2:36pm
Glencore and Directors - 10% of Priority Units Gets 7 Seats
So I was reading the circular last night and I found this gem (page 29 and paraphrased below).
"If Glencore owns more than 10% of the outstanding Priority UNits, they get to elect 7 directors to the board. If they own LESS than 10% (which is the current case) than 4 of the directors have to be "independant" from Glencore.
CUrrently Glencore owns 12.5M of the Special units, and own 0% of the ~38M Priority units (you and I own those).
The point here ,if Glencore has been able to buy 3.8m shares in the open market since the dissident directors announced an elector vote....well then they woudl get ALL 7 directors per the founding arrangement with the fund.
Anybody else see a problem here? Sigh
We need to kick Glencore OUT of this company. It is obvious they they set up the agreement to be able to control/acquire/squeeze shareholders. I dont care if they offer me $2.50 a share. I am not voting for ANY Glencore offer. The final marketing agreement with Glencore wnds in 2025. That gives the new directors a couple of years to arrange new agreements with concentrate suppliers and traders (anybody but Glencore will work fine).
The management circular is a necessary read.....but watch your blod pressure.
Comment by
wizthewiz on Feb 02, 2023 10:06am
The devil is indeed in the details. And I agree, get Glencore ort at any cost.
Comment by
rjb1954 on Feb 02, 2023 4:04pm
When do they have tor report that they have bought any Priority shares?
Comment by
schocor on Feb 02, 2023 8:05pm
i dont believe they would have to report purchases of priority units as long as they own less than 10%. once they hit 10% they have three days to report that they have reached that level; at which time they will have locked up control of the board with 7 seats. somebody tell me i am looking at this incorrectly
Comment by
rjb1954 on Feb 03, 2023 10:51am
But they already own 25% of outstanding shares. Don't they automatically have an obligation to report the purchase (or sale) of any shares within a certain time frame?
Comment by
schocor on Feb 03, 2023 11:11am
Good question. See I just dont know the answer . Glencore owns 100% of the special units, of which there are 12.5M. This repersents 25% of the total shares outstanding. HOwever the special units are not freely trading. I am thus unwure what the rules are in-so -far as reporting if and when Glencore buys the priority uinits. ANybody?
Comment by
JCW on Feb 03, 2023 11:23am
I had the same questions but gave up on trying to reason it out ... just feel certain that GC will use it in their favour! I have to think this is not a "done deal" or we wouldn't be going through the process ....and the major dissidents should be on top of it....