Activist investor Bluebell Capital has outlined plans for mining conglomerate Glencore to spin off its thermal coal business while retaining control of the new entity, a letter has revealed.
Bluebell has been pressing Glencore to exit the world’s most polluting fossil fuel, and a new letter reveals the activist has recommended a spin-off with A and B shares to separate it while retaining control of the business.
Bluebell said in the letter to Glencore seen by the FT: “By decoupling governance and economic rights, Glencore would be able to continue to exercise responsible stewardship, whilst separating coal in the interests of shareholders.”
The new structure proposal comes after Bluebell called on the firm to break off the unit on the grounds it was preventing investment.
Glencore boss Gary Nagle hit back and said none of the firm’s major shareholders were pushing for a spin-off and that “perhaps spin-offs are the wrong scenario.”
Pressure has been growing on the firm to spin off the thermal coal business in line with mining giants Rio Tinto and Anglo American.
But Glencore has argued the best move for the planet would be for Glencore to retain control and “run down” its mines over the next 30 years.