By Scott Patterson
Swiss mining giant Glencore PLC agreed to pay $534 million for stakes in two African copper projects held by its longtime and controversial business partner, the Israeli billionaire Dan Gertler, according to a person familiar with the deal.
Glencore will purchase the 31% holding held in Mutanda Mining by Mr. Gertler's Fleurette Group, valuing the stake at $922 million, the person said. Glencore will also purchase Mr. Gertler's minority holding in Katanga Mining Ltd., a deal that values the stake at $38 million, the person said.
The $534 million payment comes after settlement of loans payable by Fleurette to Glencore and shareholder loans owed to Fleurette by Mutanda, Fleurette said in a statement.
Both mines are in the Democratic Republic of the Congo, where Mr. Gertler helped Glencore secure a foothold a decade ago.
Details of deal were first reported by Bloomberg.
Mr. Gertler was at the center of the Justice Department's criminal case against New York hedge fund Och-Ziff Capital Management LLC. The Justice Department found that Mr. Gertler paid more than $100 million in bribes in the Congo--including $10 million to President Joseph Kabila--to facilitate mining deals. Mr. Gertler, through a spokesman, has denied the allegations.
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(END) Dow Jones Newswires
February 13, 2017 11:31ET (16:31 GMT)
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