{ "docId": "019dd923-622b-71dc-a6dd-04e3ee75faa1", "docSlug": "23fbfd000dfa", "documentTitle": "Glencore Plc (GLEN)", "authorId": "23_Bluebell_Capital", "authorName": "Giuseppe Bivona and Marco Taricco", "documentKindSlug": "shareholder-letter", "documentKindLabel": "Shareholder letter", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2023-04-12 00:00:00", "orientation": "portrait", "aspectRatio": 0.7070707, "pageNumber": 5, "pageCount": 8, "prevPage": 4, "nextPage": 6, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 2, "notes": "This is a page from a shareholder letter by Bluebell Capital Partners criticizing a proposed transaction.", "elementsJson": [ "paragraph", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6dd-04e3ee75faa1/5", "deckHref": "/decks/019dd923-622b-71dc-a6dd-04e3ee75faa1", "deckJsonHref": "/decks/019dd923-622b-71dc-a6dd-04e3ee75faa1.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dd-04e3ee75faa1#slide-5", "components": [ { "bbox": null, "kind": "callout", "text": "The revised offer announced on April 11th, not only fails to address any of our concerns but in our view makes the whole transaction alarmingly illogical.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-ee3c-76df-9651-33b069154bd0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.7, "x": 0.15, "y": 0.55 }, "kind": "paragraph", "text": "Provided that the revised offer did not represent an increased offer, it is also hard to imagine why Teck shareholders, us included, should now be willing to accept the revised terms considering that the USD 8.2 bn valuation is in line with the valuation (i) stemming from a private transaction, and (ii) a fairness opinion issued in view of Teck’s separation, two transactions which obviously do not involve a control premium.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0970e915-6bb0-41e2-9b78-42f77f48e25b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.7, "x": 0.15, "y": 0.5 }, "kind": "paragraph", "text": "All of this seemingly without any due diligence.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2c21d093-f96f-40f6-aa40-318baae8d4eb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.7, "x": 0.15, "y": 0.1 }, "kind": "paragraph", "text": "We would never support a business combination of this scale where a long-standing Glencore executive would be designated as the CEO of MetalsCo, least of all if it were any of ‘Mr. Glasenberg’s mini-me’ characters.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "39516007-3797-4970-9133-e02ef6ecc600", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.3, "w": 0.7, "x": 0.15, "y": 0.18 }, "kind": "paragraph", "text": "The revised offer announced on April 11th, not only fails to address any of our concerns but in our view makes the whole transaction alarmingly illogical. As part of the revised deal, Glencore’s Board of Directors has effectively offered to buy up to 100% of Elk Valley Resources for USD 8.2 bn in cash, then merge it with Glencore’s thermal coal business - which according to Glencore is worth USD 26bn - and then demerge the combined coal business to Glencore’s shareholders: in other words, according to Glencore’s Board of Director, in order to position Glencore as a leading player in future facing commodities, it is first necessary to deploy up to USD 8.2 bn of shareholder’s capital to make a massive acquisition in steelmaking coal prior to demerge the coal business and have it managed by a newly appointed Board - which has never taken the decision to make such a transformational acquisition - led by an unknown CEO yet to be chosen.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "af4a6a38-72ea-4b42-9a4b-5957f4cc4a7e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.7, "x": 0.15, "y": 0.8 }, "kind": "source-note", "text": "8 (USD 8.2 bn /24%) x 76%\n9 (i) the implied enterprise value of Elk Valley Resources (“EVR”) and the Transitional Capital Structure owned by Teck shareholders based on the Nippon Steel investment under the proposed standalone separation into Teck Metals and EVR (the “Proposed Teck Separation”), and (ii) the upper end of the valuation ranges of EVR provided by Origin Merchant Partners, in its fairness opinion to the Special Committee of the Teck Board.", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a92a718e-896f-4318-9827-e0d97d596399", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 6, "from": 3, "beatId": "c3f3d96f-895a-4149-8877-7aa40fb8029d", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Critique of Glencore Plc's offer", "beatSlug": null, "evidence": "Multiple slides critiquing the offer", "position": 0, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null }, { "to": 5, "from": 5, "beatId": "b9a372f3-ebf7-4ea6-a3b8-0ddb32f43313", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Exposing contradictions in Glencore Plc's offer", "beatSlug": null, "evidence": "A specific slide exposing contradictions", "position": 1, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }