Australian activist hedge fund Tribeca Investment Partners wants mining giant Glencore to switch its main stock market listing from London to Sydney, in a move it believes will see the company secure a more favourable valuation, according to a report by the Financial Times.
The report cites a letter sent by the hedge fund to Glencore’s board as revealing the request along with a list of other proposals aimed at boosting the company’s share price.
In the letter, Tribeca wrote: “London is no longer the home of mining.
“The London Stock Exchange has a comparatively low appetite for mining investment and is no longer suitable as the company’s primary bourse.”
Tribeca also urged Glencore to abandon a plan to spin off its profitable coal business, following its takeover of Canada’s Teck Resources business for £5.6bn, and to instead divest a minority stake in its lucrative trading division via an IPO, and discontinue share buybacks to allowing it to increase dividends.
Tribeca also said that Glencore’s shareholder returns have totalled just 9% since the company listing in 2011, compared with 95% and 126%, respectively, for mining rivals BHP and Rio Tinto.
