Bluebell asks for Glencore CEO replacement due to the distinct mismanagement of the Teck acquisition and the Viterra disposal

Glencore Plc (LSE:GLEN LN)

LONDON, UNITED KINGDOM, June 28, 2023/EINPresswire.com/ -- GLENCORE PLC (“GLENCORE”), GLEN LN, ISIN JE00B4T3BW64, LONDON STOCK EXCHANGE

In a letter sent to the Board of Directors of Glencore (the “Board”), Bluebell Capital Partners Ltd asked the Board to replace the CEO, Gary Nagle, and commence a search for a new external CEO.

Bluebell Capital Partners highlighted that under Mr. Nagle’s leadership as CEO:
1. Glencore has seen a 5.4x increase in shareholders’ dissent on the coal strategy (from 5.6% at the 2021 AGM to 30.25% at the 2023 AGM) and Glencore has breached its commitment to engage with dissenting shareholders to address concerns on the climate action transition plan.

2. Glencore has used self-contradicting specious arguments to oppose the spin-off of thermal coal: in 2021, Mr. Nagle told investors that if Glencore spins out coal “the new management of that coal business may want to continue to expand and continue to produce coal long beyond the time frames and horizons that we put out in our commitments” (3rd December 2021), then, on 26th March 2023, Glencore proposed a business combination with Teck Resources Limited (“Teck”) stating the objective to spin-off the combined coal business after the merger.

3. Glencore has demonstrated no intention to accelerate the transition into a world-class pure player in green economy transition metals but rather the intention to become the undisputable leader in coal (thermal and steel): on 3rd April 2023 Glencore announced its unsolicited bid for Teck intended to create a “world-class standalone base metals business” then on 12th June 2023 announced its readiness to acquire just Teck’s coal business, a volte-face which would create the thermal and steel coal industry heavyweight.

4. Glencore has agreed the sale of its holding in the agricultural business, Viterra, on wholly unsatisfactory terms: Glencore sold its c.50% equity stake in Viterra for $ 4.1 bn which is only 31% higher than the price of $ 3.2 bn at which Glencore sold its first c.50% equity stake in 2016, whilst in the same period the Viterra EBITDA increased by a factor of 4.3x. Additionally, 75% of the consideration will be payable in stock, and such stock will be encumbered by a protracted lock-up period. Glencore has neither disclosed who their advisors are on the transaction nor whether a robust sell-side process has been conducted.

«Although Glencore has finally announced initiatives that, on paper, go in the direction that we indicated in November 2021», Bluebell Capital Partners’ Co-CIO Giuseppe Bivona said, «we are appalled at the seemingly amateurish manner in which the initiatives have been conducted. We are very concerned about the potential destruction of shareholder value in the unfortunate circumstance that such initiatives were brought to conclusion as currently presented». «Mr. Nagle», Bivona added, «obviously, has to go».

Matthew Low
Bluebell Capital Partners Limited
+44 20 3826 0100
email us here

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.