Last year, UK companies raised just £1.3bn in new equity, net of buy-backs and acquisitions. In the past month, Nat Rothschild and Tony Hayward raised the same amount by selling shares in Vallares, their new investment vehicle. Read the FT article by Richard Lambert, CBI.
This FT article notes the trend for majority-owned companies such as Glencore and Vallares joining the FTSE100 leaving minority shareholders exposed. So far this year mining and resource companies have made up 70% of IPOs in London and now constitute around one third of the FTSE 100 Index. Read the article
London-listed Vallar will lift its stake in Indonesia’s Bumi Resources to up to 50 pct and take a majority holding in a subsidiary, as part of an attempt to simplify its structure and pave the way for a spot in the FTSE 100. Read more
The anticipated inclusion of Glencore, the Swiss-based commodities group, in the FTSE 100 at the end of the month will tilt the index further towards resources and overseas trade. At the midpoint of the IPO range, Glencore will be valued at £37bn (including money raised). To put that figure in perspective, it is about 2.4 per [...]