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Volcan Investments

Volcan announces call exercise on POEMS
RNS Number : 7765G
Volcan Investments Limited
25 July 2019
 

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS), ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA OR TO ANY U.S. PERSON OR IN OR INTO ANY JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS ANNOUNCEMENT

25 July 2019

Volcan Investments Ltd announces call exercise on POEMS

Volcan Investments Ltd ("Volcan"), a holding company wholly owned by the family trust of Mr Anil Agarwal, is today announcing that it intends to call its two issues of mandatory exchangeable bonds and settle them with its underlying Anglo American plc shares (the "POEMS"). 

The bonds were issued in March and September 2017 and financed a £3.5 billion investment by Volcan in shares in Anglo American representing approximately 20% of the company.

Mr Agarwal commented: "At the time of Volcan's initial investment I explained that this was an attractive financial investment in a great company with excellent assets and a strong board and management team. This has turned out to be the case, with our target returns achieved even sooner than expected. The share price of Anglo American has close to doubled since Volcan invested, delivering attractive gains to all investors.

As a shareholder in Anglo American, I have encouraged the company to refocus on its Southern African operations, which are the heart of the company and have been such a key driver of the growth in value of the business in the last two years, and to position its business for the many opportunities available in the rapidly growing Indian market. These opportunities will become more compelling in the future under the presidency of His Excellency Cyril Ramaphosa in South Africa and Prime Minister, Hon Narendra Modi, in India."

Today, Volcan also announces the launch of a placement of approximately 24.7 million ordinary shares in Anglo American, representing approximately 1.9 per cent of Anglo American's existing share capital (the "Placement"). The Placement will be made to certain institutional investors by way of an accelerated bookbuilding process.

 

Bookbuilding will commence immediately. Volcan reserves the right to change the terms or timing of the Placement at any time.

 

Settlement for the Placement is expected to be on or about 12 August 2019.

 

Settlement of the Placement will be conditional upon settlement of the early redemption option under the POEMS and other customary conditions.

 

J.P. Morgan has been appointed by Volcan to act as Sole Bookrunner of the Placement.

 

Following this transaction, neither Volcan nor its subsidiaries will hold any Anglo American shares.

 

DISCLAIMER

No offer or invitation to acquire any securities is being made pursuant to this announcement.  The distribution of this announcement in certain jurisdictions may be restricted by law.  Persons into whose possession this announcement comes are required by Volcan and the Issuer to inform themselves about, and to observe, any such restrictions.

The securities referred to in this announcement (the "Securities") are not being, and will not be, offered or sold in the United States or to, or for the benefit of any U.S. person (as defined in Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act")). Nothing in this announcement constitutes an offer to sell or the solicitation of an offer to buy the Securities in the United States or by any U.S. person or in any other jurisdiction.  The Securities have not been and will not be registered under the Securities Act and may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except in accordance with the Securities Act.

No action has been or will be taken in any jurisdiction in relation to the Securities to permit a public offering of securities.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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