Glencore PLC has been asked by a hedge fund to move its primary listing from London to Sydney, the Financial Times reported on Thursday.
Glencore is a Barr, Switzerland-based diversified mining group. It is listed on the London Stock Exchange, as well as on the Johannesburg Stock Exchange.
Tribeca Investment Partners, an Australian hedge fund, wrote to Glencore’s board this week with a ‘list of proposals to boost the share price, which it said had lagged behind rivals since the Swiss commodity giant’s public offering in 2011’, the FT said.
‘Glencore’s share price has underperformed its peers,’ Ben Cleary, portfolio manager of Tribeca Global Natural Resources, wrote in the letter seen by the newspaper. ‘It is through these actions that the company can increase shareholder return and close the valuation gap.’
‘London is no longer the home of mining,’ wrote Cleary, adding that Glencore’s progress under Chief Executive Gary Nagle to lower carbon emissions at its mines would be better recognised by investors outside of Europe.
‘The LSE has a comparatively low appetite for mining investment and is no longer suitable as the company’s primary bourse.’ he concluded.
https://www.ft.com/content/fde4cadb-f0ba-469c-8f9c-f646de38963e
Glencore shares were marginally higher at 419.35 pence on Thursday morning in London. They were up 0.7% to R 99.94 in Johannesburg.
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