(Alliance News) - JPMorgan Securities PLC said Wednesday that Pelham Investment Corp plans to sell about 12% of Hochschild Mining PLC's total issued share capital.
Pelham is looking to offload 62 million Hochschild shares, which closed 3.1% higher in London on Wednesday at 236.80 pence each.
JPMorgan noted Pelham is owned by Hochschild Chair Eduardo Hochschild. Following the sale, Hochschild will still own 197 million shares in the miner, which represents a 38% stake.
The shares will be offered to institutional investors (through an accelerated bookbuild to be carried out by JPMorgan Securities, acting as sole bookrunner.
"The sale is subject to demand, price and market conditions, and, in particular, the number of placing shares may be changed," JPMorgan said.
It added: "The price at which the placing shares are to be placed and the final number of placing shares will be agreed by the Seller and JPMorgan Cazenove at the close of the bookbuilding process."
"Hochschild's family founded Hochschild Mining over one hundred years ago and he remains committed to the company in the long-term. Nevertheless, Hochschild believes now is an appropriate moment to recycle some capital from his holding in the company to facilitate investments elsewhere across his existing businesses and in new opportunities," JPMorgan continued.
By Paul McGowan; paulmcgowan@alliancenews.com
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Hochschild (HOC)