Volcan approves spin-off of its business in Puerto de Chancay, but Glencore rejects results

On the last Thursday, August 24, 2023, Volcan Mining Company SAAat its first shareholders meeting, approved by majority the spin-off of its business in the Port of Chancayas reported to the Stock Market Superintendence through an important event.

The decision was supported by a large majority, concluded with 2,305,873,695 votes in favor (representing 71.93% of the shareholders attending the Meeting), 899,761,835 against (representing 28.07%) and 0 abstentions.

Thus, the patrimonial block of 40% of the participation in Cosco Shipping Ports Chancay Peru it will now be managed by Inversiones Portuarias Chancay SAA (IPCH). As a consequence of the spin-off, it was agreed to reduce the capital stock of Volcan in the amount of S/448 million 422,939.25.

In this sense, The social capital of the mining company will be reduced from S/2,690,537,635.50 to S/2,242,114,696.25. This way, the nominal value per share after the split will be equal to S/0.55.

For his part, Glencore, the company that owns a majority stake in Volcan, disagreed with the spin-off, alleging “wrongdoing” throughout the proposal’s development and voting.

“A spin-off of this importance, before being submitted to the General Shareholders’ Meeting, requires prior diligent and orderly approval from Volcan’s Board of Directors. In this case, the information published by Volcan late (two days before the General Meeting called for August 24) shows a controversial statement by the Board of Directors, which is incomplete and irregular, ”he wrote in a statement.

In addition, Glencore insists that Volcan’s financial situation is not in a strong position, so it considers that carrying out a reduction of its capital at this time would not be appropriate.

According to the financial information released by Volcan on July 31, the company shows high levels of indebtedness and a negative cash flow, which could compromise its liquidity in the short term, he says.