Business World

Monday 18 December 2017

Just three out of six left standing in the Glencore billionaires' club

Billionaire Ivan Glasenberg, chief executive of Glencore International
Billionaire Ivan Glasenberg, chief executive of Glencore International

Javier Blas and  Jesse Riseborough

Glencore Plc's initial public offering minted six billionaires in 2011, when Ivan Glasenberg and five other executives together controlled stakes worth $24bn.

Today, only three would remain in that elite club - based on the value of their holdings in the company - and two of those are on the brink of losing their status after the shares of the leading commodity trader lost 70pc since the flotation.

The May 2011 offering generated more wealth than the IPOs of some of Wall Street's most prominent firms, including Goldman Sachs Group, in 1999.

Since then, Glencore's share price has fallen every year, a decline that's accelerated in recent months as concern China's economy is slowing has seen commodity prices dive. Glencore dropped 9.7pc in London to close at a record low of 158.95 pence last Wednesday after the company reported a plunge in first-half profit. The shares, which rose 3.2pc by 2:36pm in London trading on Thursday, are down nearly 45pc this year.

Glencore chief executive Glasenberg remains an undisputed billionaire, but the value of his stake has dropped from $9.4bn (€8.2bn) in May 2011 to $2.8bn now, according to Bloomberg estimates based on public data.

Among his colleagues, the stakes controlled by Tor Peterson and Alex Beard, the heads of coal and oil respectively, are each worth less than $1bn today.

Gary Fegel, the former head of aluminum who left Glencore in 2013, was a billionaire at the time of the IPO based on his stake.

Fegel has sold all his Glencore shares since he left and is no longer financially engaged with the trading house, he said in response to a Bloomberg query.

If he had continued to hold his stake in Glencore, it would be worth $385m today.

Daniel Mate, head of zinc, and Telis Mistakidis, head of copper, are just above the billionaire line, with stakes valued at $1.04bn and $1.03bn, respectively, down from about $3.6bn four years ago. If the shares drop another 5pc, they will become multi-millionaires.

Glasenberg and some of his executives have bought more shares over the years, reinvesting their dividends. Glencore declined to comment.

Peter Grauer, the chairman of Bloomberg LP, parent of Bloomberg News, is a senior independent non-executive director at Glencore. (Bloomberg)

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business