Trading chief set for £6bn stake in Glencore

The chief executive of commodities trading giant Glencore will own a stake in the firm worth around £6bn (€6.7bn) when it launches on the Stock Exchange this month.

Ivan Glasenberg, the group’s largest investor, will own a 15.8% stake in the company following the listing – which will be the UK’s largest stock flotation yet.

Glencore earlier said its share price range will be 480p to 580p when it floats on May 19, valuing the company at around £36.5bn (€40.6bn) at the midpoint.

The company, which deals with metals, minerals, energy and agricultural products, employs around 57,500 staff worldwide, of which about 200 are based in London.

The planned listing will propel Glencore into the FTSE 100 Index and is set to raise around £6.1bn (€6.8bn) for the Swiss-based company.

Executive directors who own a stake in the firm will be “locked in” to their holdings for five years, the company said.

The listing is set to make Mr Glasenberg, who will earn a £925,000 (€1bn) annual salary in his role, one of the richest men in Europe.

South African-born Mr Glasenberg, 54, became chief executive of the group in 2002, after joining in 1984. He will own an 18% stake in the firm up until the flotation.

Mr Glasenberg, a former coal trader who also sits on the board of Anglo-Swiss miner Xstrata, in which Glencore holds a 34% stake, said: “We are pleased by the strong investor interest shown in Glencore’s unique commodity business model.

“Today we are able to announce one of the largest cornerstone investor participation’s ever achieved for an IPO.

“Over the decades we have built our business on long-term mutually-beneficial relationships with customers, suppliers and capital providers.

“We believe that the price range of our offer continues that approach and we look forward to welcoming new shareholders as long-term partners in our growth.”

Other top shareholders include Daniel Mate and Telis Mistakidis, heads of the copper and lead departments, who will each control a 6% stake worth around £2.2bn (€2.4bn).