King & Wood Mallesons has advised long-term client Glencore on two strategic transactions, including its life-of-mine off-take agreement and provision of a financing facility to Straits Resources Limited (Straits) which was announced last week.
Under the deal, Glencore will provide a $20 million secured short term facility to Straits and will sub-underwrite up to $40 million of Straits’ $60 million fully underwritten 1.55-for-1 pro rata renounceable entitlement offer. Glencore has also entered into a life of mine off-take agreement with Straits for the production from Straits’ Tritton copper mine.
The King & Wood Mallesons team was led by M&A partner Nicholas Pappas, who was supported by senior associate Paul Schroder. Partner Paul Smith led the banking and finance advice, supported by senior associate Jennifer Kuang.
King & Wood Mallesons also advised Glencore in relation to its acquisition of AACL Pty Ltd, a subsidiary of Australia’s biggest corporate grain grower AACL Holdings announced this week.
Under the deal, Glencore will acquire all of the shares on issue in AACL Pty Ltd in consideration for funding support and a cash payment not exceeding A$8.5 million in aggregate, and the buy-back of the AACL shares in which Glencore has a relevant interest (approximately 16.5% of the AACL shares on issue).
The King & Wood Mallesons team was led by M&A partners David Eliakim and Nicholas Pappas, who were supported by senior associate Sarah Houghton and solicitor Mark Vanderneut.
Partner Nicholas Pappas said: “Glencore continues to be a very active player in the Australian market and we are pleased to have advised our valued client on two strategic transactions in the space of a week.”
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