LONDON - Mining mogul Anil Agarwal pocketed just 6% profit from his 3.5 billion pound investment in Anglo American , held since 2017, even though the underlying shares rose over 50% since then, according to Reuters estimates.
After paying back the loan, Volcan would have been left with a 1.9% stake that was sold in the open market for 519 million pounds on Thursday. This makes up his gross profit from the whole investment, according to a source familiar with the deal. The convoluted structure, dubbed “POEMS” by JPMorgan, is a variation of the more traditional “exchangeable bond” format, where a borrower issues debt that can be converted into shares of another company.The first bond would have matured in April 2020, if the Indian billionaire had not cashed out, dashing speculation that he was preparing to take over the 30.8 billion pound diversified miner.