Trafigura announces support for Nyrstar rights issue and strategy statement
Geneva, 9th November 2015 - Trafigura, one of the world’s largest commodities trading firms, today announced plans to subscribe for shares in Nyrstar for up to EUR125m of the EUR250 – 275m rights offering announced by Nyrstar NV, the leading metals business specialising in zinc.
Trafigura is already the largest single shareholder in Nyrstar with a holding in excess of 20 percent. Trafigura plans, subject to the fulfilment of certain conditions including regulatory clearances, to subscribe for the stated amount of the rights issue separately announced by Nyrstar today.
Trafigura also expressed its support for other measures announced today by Nyrstar with the aim of improving its financial performance, including its decision to pursue strategic alternatives for its mining assets.
The underwriting would involve Trafigura taking up rights in proportion to its existing shareholding in Nyrstar and taking up additional Nyrstar shares to the extent that other shareholders do not subscribe for such shares pursuant to their rights under the offering.
Trafigura has made a Notification to the European Commission in order to secure anti-trust clearance for its interest in Nyrstar, as is customary in transactions of this nature between companies the size of Trafigura and Nyrstar.
Jeremy Weir, Trafigura Chief Executive Officer, commented: “We strongly support the initiatives that have been announced by Nyrstar today and we are happy to confirm our intention to underwrite half of the planned rights issue. This is a sign of our confidence in the ability of Nyrstar’s management to execute the company’s strategy with a significantly strengthened balance-sheet.”
ENDS
For further information contact:
Trafigura’s Global Press Office - Tel: +41 (0) 22 592 4528 or media@trafigura.com
Notes to editors
Founded in 1993, the Trafigura Group has become one of the world’s leading independent commodity traders, specialising in the oil, minerals and metals markets. The company has achieved substantial growth in recent years, growing revenue to USD127.6 billion in 2014. Primary trading activities are the supply and transport of oil and petroleum products and metals and minerals. The trading business is supported by industrial and financial assets including global oil products distribution company Puma Energy; joint venture company DT Group; global terminals operator Impala; Trafigura’s Mining Group and Galena Asset Management. The Trafigura Group is owned by 600 of its 5,300 employees who work in 36 countries around the world. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.