Aabar Investments Intends to Invest a Total of $1.0 Billion in Glencore's IPO and Will be the Largest Cornerstone Investor in the Company

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May 04, 2011, 08:19 ET

ABU DHABI, UAE, May 4, 2011 /PRNewswire/ -- Aabar Investments PJS ("Aabar") today confirmed an investment of $850 million in Glencore International plc ("Glencore") as a cornerstone investor with an intention to invest an additional $150 million in the Global Offer. Glencore is one of the world's leading integrated producers and marketers of commodities. This investment makes Aabar the largest cornerstone investor in the IPO.

His Excellency Khadem Al Qubaisi, Chairman of Aabar: "We are pleased to count ourselves as the largest new shareholder of Glencore post its IPO. Glencore is known for its achievements and value creation in the resources space and we are excited about the potential opportunities between Abu Dhabi and Glencore given Abu Dhabi's leadership in petrochemicals and hydrocarbons domestically and around the world. The investment is consistent with our policy of investments and strategic partnerships with global market leading businesses and, we are looking forward to a successful partnership with the company".

The $850 million investment represents the foundation of Aabar's commitment as the largest cornerstone shareholder in Glencore and the sovereign wealth fund intends to acquire additional shares in the Global Offer to bring its initial investment up to $1 billion in the short term.

"Given Aabar's focus on value enhancing investments and the great opportunity that global commodities offer we intend to explore in due course areas of co-operation between the two firms. This is an important milestone in Aabar's development strategy and we are proud to lead this effort," adds Mohamed Al-Husseiny, CEO of Aabar.

About Aabar

Aabar is an investment company headquartered in Abu Dhabi with investments around the world. It invests in various sectors including financial services, automotive, real estate, energy, manufacturing & technology and aerospace, with many of its investments being made by way of international partnerships and alliances. Its largest stakeholder is the International Petroleum Investment Company (IPIC), which is wholly owned by the Government of the Emirate of Abu Dhabi.

About Glencore

Glencore is one of the world's leading integrated producers and marketers of commodities that industries around the world need. Customers in industries such as automotive, power generation, steel production and food processing, rely upon Glencore's established global network of operations as a source of metals and minerals, energy products and agricultural products. These commodities either originate from Glencore's owned production assets or are secured from third parties, and benefit from the refining, processing and marketing expertise of Glencore. The Group also provides financing, logistics and other supply chain services to producers and consumers of commodities.

Glencore was founded in 1974. It is currently a privately-held group owned by its management and employees. Headquartered in Baar, Switzerland, Glencore employs over 2,700 people in its marketing operations in 50 offices across 40 countries. In its industrial operations, Glencore employs over 54,800 people in 30 countries. Glencore has interests in various publicly listed companies including 34.5% in Xstrata, 44% economic (39% voting) in Century Aluminum, 70.5% in Minara Resources, 74.4% in Katanga Mining, 8.8% in UCR, 51.5% in Chemoil Energy and 32.2% in Recylex.

http://www.aabar.com

SOURCE Aabar Investments PJS