Glencore to Pay $534 Million for Dan Gertler's Stakes in Two Congo Copper Mines -- Update

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 11:31 ET (16:31 GMT)

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