Commodities trader Glencore has downsized its plan to boost its majority stake in Kazakh zinc producer Kazzinc.
Significantly, it will now also do so in exchange for less cash.
The company will pay up to £863m -in shares and cash- to raise its stake to 69.61% (from 50.7% now).
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The deal will include at least 176 million shares, to be issued to the seller.
At its initial public offering last year the company said it was targeting an increase to 93% for £1.975bn in cash and shares (for approximately £1.36bn in cash and £617m in new shares to be more precise).
Glencore has been under pressure -including from ratings agencies- to reduce the cash portion of the deal, given that a spin-off of Kazzincs gold unit is considered unlikely in the current environment.
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