Qatar Holding Satisfied with Xstrata-Glencore Proposed Merger Terms

Doha, November 15 (QNA) – Qatar Holding’s (QH) board says it continues to see merit in the merger of mining company Xstrata and Glencore International, a statement by the Qatari sovereign wealth fund said on Thursday.
QH, Xstrata’s second-largest shareholder, said it has decided how it will vote its shares at the Further Xstrata General Meeting and the New Court Meeting, both to convene Tuesday. The board said announcing its voting intentions aims to provide clarity to the market. 
The board said it’s “satisfied with the terms of the proposed merger, having secured the improved exchange ratio of 3.05 new Glencore shares for every one existing Xstrata share.”
“With respect to the Revised Management Incentive Arrangements, QH strongly believes that retaining Xstrata s operational management is of critical importance to the successful and stable integration of the two companies, the completion of key projects within agreed timescales and to maximizing the benefits of the merger.”
The board pointed to the sensitivities concerning governance issues in the U.K. and said it does not feel it appropriate to influence the outcome either way.
“Accordingly, at the New Court Meeting QH will vote its entire shareholding in Xstrata in favor of both New Scheme Resolution 1 (to approve the New Scheme subject to the MIA resolution being passed) and New Scheme Resolution 2 (to approve the New Scheme subject to the MIA resolution not being passed); and at the Further Xstrata General Meeting, QH will abstain from voting on the MIA Resolution, whilst voting in favor of Resolution 1 (regarding procedural matters relating to Scheme implementation),” the statement continued. (QNA)