(07/21/2017) Paranapanema, Brazil’s largest copper producer, has executed an investment agreement with the Anglo-Swiss multinational Glencore in the context of its restructuring process, which aims to resume Paranapanema’s full operational activity and value generation for its shareholders. Under such agreement, Paranapanema may issue new shares to be underwritten by Glencore resulting in an investment of R$66,000,000 (or approximately USD$21,000,000). The transaction is subject to customary closing conditions, such as regulatory approvals and the capital increase to be carried out by Paranapanema, that will be further defined by Paranapanema in compliance with all regulatory aspects. In addition, the agreement provides that Glencore will appoint a member to the board of directors of the company subject to the approval of the shareholders of Paranapanema.

According to Marcos Camara, CEO of Paranapanema, the agreement represents a strong confidence in Paranapanema´s business platform, unique in the Brazilian market. “The cooperation with Glencore will be indeed fruitful as a wide array of opportunities will be explored for both companies and will create value for respective shareholders”, explains the executive.

Glencore has operations with approximately 90 commodities and is present in more than 50 countries, with 155,000 employees and annual revenues of $ 177 billion, being one of the largest copper players in the world, with a production of 1.4 million tons per year.

Paranapanema is also negotiating with other existing shareholders for a possible additional investment and an agreement with its main creditors for its debts reprofiling is under way.

About Paranapanema                      

With a consolidated net revenue of BRL 4.6 billion in 2016, Paranapanema is the largest non-integrated Brazilian producer of refined copper and copper products (rebar, drawn wire, laminated, bars, pipes, connections and their alloys).

The company has three industrial plants, one primary copper unit located in the municipality of Dias d’Ávila (BA), and two copper products and alloys plants, in Santo André (SP) and Serra (ES). It also has a distribution center in Rio de Janeiro, in the city of Itatiaia. With 2,000 employees, Paranapanema owns well-known brands in the Brazilian market, such as Eluma and Caraíba.

About Glencore

Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The Group’s operations comprise around 150 mining and metallurgical sites, oil production assets and agricultural facilities.

With a strong footprint in both established and emerging regions for natural resources, Glencore’s industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries.

Glencore’s customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing sectors. Glenore also provides financing, logistics and other services to producers and consumers of commodities. Glencore’s companies employ around 155,000 people, including contractors.