Glencore has watered down its plans for an increased stake in zinc producer Kazzinc, announcing today it to acquire an extra 18.91 per cent of the firm from Verny Capital.
The commodities giant, which already owns 50.7 per cent of Kazzinc, was targeting an acquisition of up to 48.73 per cent from Verny Capital.
Glencore has backed down on the higher stake, and today announced it is to acquire just 18.91 per cent of Kazzinc from Verny Capital, upping its holding in the zinc producer to 69.61 per cent for up to $1.4bn (£863m) in shares and cash.
At the time of its IPO last year, Glencore had said it was targeting an increase to 93 per cent for a total of $3.2bn, including $2.2bn in cash and $1bn in new shares.
Glencore is currently in the final stages of a merger with miner Xstrata, who last week asked for an extension of the deadline to 1 October to thrash out final details of management composition and remuneration.
City A.M. Reporter