Mining mogul Anil Agarwal made just 6% profit on Anglo investment

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In company news today | Mining mogul Anil Agarwal made just 6% profit on Anglo investment

London — Mining mogul Anil Agarwal pocketed just 6% profit from his £3.5bn 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 £519m on Thursday. This makes up his gross profit from the whole investment, according to a source familiar with the deal. Under the terms of the original deal, Volcan borrowed £3.5bn through the issuance of a mandatory convertible bond arranged by US investment bank JPMorgan to fund the acquisition.

Agarwal’s gross profit is the 24.7-million shares, or about 1.9% of Anglo, he was left with after repaying the bond. JPMorgan arranged a sale of those shares for £519m on Thursday.

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Mining mogul Anil Agarwal made just 6% profit on Anglo investmentBiggest shareholder Anil Agarwal unwinds stake to repay debts
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