US investor group taps Glencore in bid for Sherritt
The consortium is touting its proposal as an alternative to a deal that Sherritt has been negotiating with Gillon Capital.
A U.S. investment consortium, comprising Glencore, Kyma Capital, Brevan Howard Asset Management co-founder Trifon Natsis and an unidentified anchor investor, has proposed to recapitalize Sherritt International and gain control of the mining company. The offer, made on June 26, includes immediate equity funding at 12¢ a share, without a third-party debt-financing condition, and affords existing shareholders the option to invest at the same price.
The consortium asserts that their proposal provides a credible path to noteholder consent and offers a better transaction than Sherritt's ongoing discussions with Gillon Capital. Gillon's proposal involves a warrant that could ultimately grant control of the company. Sherritt's stock surged in response to the proposal, trading at 15¢ apiece in Toronto, with a market value of roughly $105 million.
The consortium aims to stabilize Sherritt's capital structure, preserve Fort Saskatchewan operations, and establish a pathway for serving critical-minerals supply chains. The offer comes as Sherritt faces a liquidity crunch following the suspension of its Cuban operations due to U.S. sanctions.
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