LONDON – A top shareholder in Glencore, Abu Dhabi's Aabar Investments, has written off more $392-million of its $1-billion investment in the commodities trader, less than two years after taking part in its record listing.
Aabar, a unit of Abu Dhabi's State-owned International Petroleum Investment, became the largest new shareholder in Glencore when the mining-to-trading giant went public in May 2011, investing $1-billion.
According to financial statements filed by IPIC on Thursday, Aabar, which owns 1.4% of Glencore, has recognised an impairment loss of $392-million. It gave no further details.
Glencore's shares are trading almost 40% below an IPO price of 530p, underperforming by more than 10% a mining sector that has been hit by worries over cooling demand - despite hopes its marketing arm would help weather stormier times for the commodities markets.
The writedown comes as Glencore, the world's largest diversified commodities trader, moves into the final stages of its long-awaited takeover of miner Xstrata, in which it is already the largest shareholder.
Qatar, which has become the second-largest shareholder in Xstrata, said on Thursday it would vote in favour of the deal.
IPIC said in the same interim financial statement that it had booked a fair value loss of $660-million on its shares in Italian bank UniCredit, though a gain of $51-million on its stake in automaker Daimler.
IPIC said its profit for the six months to the end of June totalled $818-million, down from $1.16-billion a year ago.