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35-981: Nikanor plc was a publicly quoted holding company for Global Enterprises Corporate (GEC) with assets in the rich Copperbelt region in Katanga Province , Democratic Republic of the Congo (DRC). Nikanor plc was incorporated in 2006 with its registered head office in Douglas, Isle of Man . Nikanor's stock was listed on the London Stock Exchange 's (LSE) Alternative Investment Market in London in July 2006. The initial public offering (IPO) raised US$ 400 million, and Nikanor's market capitalization reached $ 1.5 billion. The senior management team of Nikanor included Emile Mota and Simon Tuma-Waku, who were

70-440: A company they perceive as possibly lacking liquidity. For example, if all shareholders were to simultaneously try to sell their shares in the open market, this would immediately create downward pressure on the price for which the share is traded unless there were an equal number of buyers willing to purchase the security at the price the sellers demand. So, sellers would have to either reduce their price or choose not to sell. Thus,

105-401: A long period of time after maturity into a profitable company. However, from 1997 to 2012, the number of corporations publicly traded on US stock exchanges dropped 45%. According to one observer ( Gerald F. Davis ), "public corporations have become less concentrated, less integrated, less interconnected at the top, shorter lived, less remunerative for average investors, and less prevalent since

140-553: A separate entity, its former shareholders receiving compensation in the form of either cash, shares in the purchasing company or a combination of both. When the compensation is primarily shares then the deal is often considered a merger . Subsidiaries and joint ventures can also be created de novo . That often happens in the financial sector. Subsidiaries and joint ventures of publicly traded companies are not generally considered to be privately held companies (even though they themselves are not publicly traded) and are generally subject to

175-523: A stock exchange ( listed company ), which facilitates the trade of shares, or not ( unlisted public company ). In some jurisdictions, public companies over a certain size must be listed on an exchange. In most cases, public companies are private enterprises in the private sector, and "public" emphasizes their reporting and trading on the public markets. Public companies are formed within the legal systems of particular states and so have associations and formal designations, which are distinct and separate in

210-543: A subsidiary named DRC Copper and Cobalt Project (DCP), 75% owned by Global Enterprises Corporate Ltd. and 25% by Gécamines, with properties located next to Katanga Mining's properties near Kolwezi . KOV (Komoto Oliveira Virgule) is a "massive open cast copper-cobalt project comprising the world-class assets Tilwezembe and Kananga deposits and the Kolwesi concentrator in the DRC's Katanga province." In 2006, exploitation permits for

245-455: A ton, Katanga's stock market value [had reached] nearly $ 3.2 billion. [...Since the Glencore acquisition,] Katanga Mining is reaping the benefit of the surging markets and its wealthy, powerful owner. After losing $ 108 million in 2009, it posted an annual profit of $ 265 million in 2010. Timeline summary of transactions: On September 9, 2004, GEC signed a joint-venture (JV) agreement with

280-408: Is privately held can buy out the shareholders of a public company, taking the company off the public markets. That is typically done through a leveraged buyout and occurs when the buyers believe the securities have been undervalued by investors. In some cases, public companies that are in severe financial distress may also approach a private company or companies to take over ownership and management of

315-427: Is traded on a major stock exchange, it is not uncommon when shares are traded over-the-counter (OTC). Since individual buyers and sellers need to incorporate news about the company into their purchasing decisions, a security with an imbalance of buyers or sellers may not feel the full effect of recent news. Katanga Mining Katanga Mining formed two joint-venture projects with state-owned Gécamines to develop

350-404: Is when a company has little or no trading activity and the market price is simply the price at which the most recent trade took place, which could be days or weeks ago. This occurs when there are no buyers willing to purchase the securities at the price being offered by the sellers and there are no sellers willing to sell at the price the buyers are willing to pay. While this is rare when the company

385-619: The Luilu refinery in Kolwezi due to the depressed price of cobalt. Kamoto Copper Company (KCC) owns a large mining complex near Kolwezi that includes Kamoto mine , Mashamba East , KTE underground mine, Etang South underground mine, KOV mine , and the T17 mine. Ore from these mines is processed at the Kamoto concentrator and the Luilu metallurgical plant . As of 2010 the open pit Kananga Mine

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420-789: The Paradise Papers in 2017 revealed details of the 2008-2009 negotiations between Katanga and the Congolese state-owned Gécamines . Due to an impasse in negotiations, they called in the businessmen Dan Gertler to act as a mediator. Along with an indirect personal stake in the Katanga project, Gertler had a close personal relationship with the Congolese president's top advisor Augustin Katumba Mwanke  [ fr ; de ] , and allegedly passed along millions in bribes on behalf of Och Ziff Capital Management . Canada required

455-588: The Cosaf Ltd consortium (which also includes the Swiss trader and Gertler's long-time associate, Glencore International AG and UK equity fund, RP Capital Partners). The bid was opposed by those shareholders in Nikanor not involved in the bid. In January 2008, Nikanor was merged into Katanga Mining Limited . Katanga Mining Company (KMC) paid $ 452 million to Nikanor shareholders. Nikanor planned on participating in

490-574: The United States, companies with over 500 shareholders in some instances are required to report under the Securities Exchange Act of 1934 ; companies that report under the 1934 Act are generally deemed public companies. A public company possess some advantages over privately held businesses. Many stock exchanges require that publicly traded companies have their accounts regularly audited by outside auditors and then publish

525-470: The accounts to their shareholders. Besides the cost, that may make useful information available to competitors. Various other annual and quarterly reports are also required by law. In the United States, the Sarbanes–Oxley Act imposes additional requirements. The requirement for audited books is not imposed by the exchange known as OTC Pink. The shares may be maliciously held by outside shareholders and

560-498: The assets were transferred to the companies' subsidiary, DCP. Gertler and Steinmetz placed GEC's 75% share of KOV into Nikanor plc, registered in the Isle of Man. In January 2008, Nikanor was merged into Katanga Mining Limited , when the latter acquired it for $ 452 million. Katanga Mining Limited operates a major mine complex in the DRC producing refined copper and cobalt with the "potential of becoming Africa's largest copper producer and

595-469: The chief of staff and Minister of Mines and Energy under DRC President Joseph Kabila . According to Mining Journal , Kabila promulgated the new mining code in 2002. In May 2007, Beny Steinmetz, Dan Gertler and the Gertler Group, Nikanor's three main stakeholders, launched a hostile take over bid for Nikanor. The bid valued Nikanor's shares at £6.00, the price when it floated, and was presented by

630-432: The company. One way of doing so would be to make a rights issue designed to enable the new investor to acquire a supermajority . With a supermajority, the company could then be relisted, or privatized. Alternatively, a publicly traded company may be purchased by one or more other publicly traded companies, with the target company becoming either a subsidiary or joint venture of the purchaser(s), or ceasing to exist as

665-466: The consolidation of the companies operating in the Zambian–DRC Copperbelt region. In a 2011 article by Reuters, journalists described how Glencore and Dan Gertler partnered in Nikanor from 2007 until its final merger with Katanga Mining. In June 2007, Glencore and partner Dan Gertler, an Israeli mining magnate, paid GB£300 million pounds for a quarter-stake in mining company Nikanor, which

700-422: The core of international law disputes with regard to industry and trade. Usually, the securities of a publicly traded company are owned by many investors while the shares of a privately held company are owned by relatively few shareholders. A company with many shareholders is not necessarily a publicly traded company. Conversely, a publicly traded company typically (but not necessarily) has many shareholders. In

735-444: The firm's stock. For many years, newly-created companies were privately held but held initial public offering to become publicly traded company or to be acquired by another company if they became larger and more profitable or had promising prospects. More infrequently, some companies such as the investment banking firm Goldman Sachs and the logistics services provider United Parcel Service (UPS) chose to remain privately held for

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770-583: The larger Mutanda mine . The smaller Katanga mine is remaining closed during 2015-2017 while new processing facilities are constructed. Prior to 2015 Katanga produced 113,000 tonnes/yr of copper while Mutanda continues to produce over 210,000 tonnes/yr February 2015, an overturned truck spilled 60 cubic metres of sulphuric acid. In January 2018, a dike broke at Kamoto mine, causing a sodium hydrosulphide spill that damaged crops and killed fish. Four hundred and sixty households were affected. Soil contamination had not been cleaned up later in 2018. The release of

805-770: The mining complex: Kamoto Copper Company (KCC) and DRC Copper and Cobalt Project (DCP). The company was first listed on the Toronto Stock Exchange in August 1997. In January 2008 Katanga Mining acquired Nikanor plc for $ 452m. Katanga Mining was purchased by Glencore in 2020 and it was de-listed from the Toronto Stock Exchange. DRC Copper and Cobalt Project (DCP) began mining Tilwezembe , an open-pit copper and cobalt mine, in 2007. In November 2008, Katanga Mining said they had temporarily suspended mining at Tilwezembe and ore processing at

840-425: The number of trades in a given period of time, commonly referred to as the "volume" is important when determining how well a company's market capitalization reflects true fair market value of the company as a whole. The higher the volume, the more the fair market value of the company is likely to be reflected by its market capitalization. Another example of the impact of volume on the accuracy of market capitalization

875-793: The original founders or owners may lose benefits and control. The principal–agent problem , or the agency problem is a key weakness of public companies. The separation of a company's ownership and control is especially prevalent in such countries as the United Kingdom and the United States. In the United States, the Securities and Exchange Commission requires firms whose stock is traded publicly to report their major shareholders each year. The reports identify all institutional shareholders (primarily firms that own stock in other companies), all company officials who own shares in their firm, and all individuals or institutions owning more than 5% of

910-572: The polity in which they reside. In the United States , for example, a public company is usually a type of corporation though a corporation need not be a public company. In the United Kingdom , it is usually a public limited company (plc). In France , it is a société anonyme (SA). In Germany , it is an Aktiengesellschaft (AG). While the general idea of a public company may be similar, differences are meaningful and are at

945-476: The previous six months and was running out of cash. Global credit was drying up, the copper market had fallen 70 percent in just five months, and Congo [...] was the last place an investor wanted to be. [...] For about [US]$ 500 million in a convertible loan and rights issue, Katanga agreed to issue more than a billion new shares and hand what would become a stake of 74 percent to Glencore [... By early 2011] with copper prices regularly setting records above $ 10,000

980-497: The price per share. For example, a company with two million shares outstanding and a price per share of US$ 40 has a market capitalization of US$ 80 million. However, a company's market capitalization should not be confused with the fair market value of the company as a whole since the price per share are influenced by other factors such as the volume of shares traded. Low trading volume can cause artificially low prices for securities, due to investors being apprehensive of investing in

1015-446: The same reporting requirements as publicly traded companies. Finally, shares in subsidiaries and joint ventures can be (re)-offered to the public at any time. Firms that are sold in this manner are called spin-outs . Most industrialized jurisdictions have enacted laws and regulations that detail the steps that prospective owners (public or private) must undertake if they wish to take over a publicly traded corporation. That often entails

1050-509: The state-owned Gécamines to rehabilitate and operate the Kananga and Tilwezembe mines. The deal was ratified by Joseph Kabila's presidential decree. The final joint-venture structure was held 75% by GEC and 25% by Gécamines, with GEC undertaking to invest $ 300–400 million in a new leaching plant, with projected output to reach 200,000 tons of copper a year, based on its interests in the huge KOV (Komoto Oliveira Virgule). GEC and Gécamines formed

1085-428: The turn of the 21st century". Davis argues that technological changes such as the decline in price and increasing power, quality and flexibility of computer numerical control machines and newer digitally enabled tools such as 3D printing will lead to smaller and more local organization of production. In corporate privatization, more often called " going private ," a group of private investors or another company that

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1120-475: The world's largest cobalt producer." Katanga paid $ 452 million in cash to Nikanor shareholders. Nikanor planned on participating in the consolidation of the companies operating in the Zambian–DRC Copperbelt region. Public company A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on

1155-409: The would-be buyer(s) making a formal offer for each share of the company to shareholders. The shares of a publicly traded company are often traded on a stock exchange . The value or "size" of a company is called its market capitalization , a term which is often shortened to "market cap". This is calculated as the number of shares outstanding (as opposed to authorized but not necessarily issued) times

1190-480: Was also the property of KCC. The mine was not active. The Dima mines, consisting of Mashamba East, Mashamba West and Dikuluwe mine were originally owned by the state-owned Gécamines before majority rights were sold to Katanga Mining and Nikanor in the early 2000s. Following the merger with Nikanor in 2008, Katanga sold Dikuluwe and Mashamba West to Gécamines for $ 825 million. In February 2017 Glencore purchased nearly all of Gecamines interests in Katanga and

1225-491: Was seeking to revive derelict copper mines next to Katanga's. That deal gave Glencore exclusive rights to sell all Nikanor's output – an " offtake " agreement [...] By investing in Nikanor, Glencore consolidated a powerful partnership [...] linked to Gertler, an old Congo hand [with] close ties to government officials including President Joseph Kabila. On Christmas Eve 2008, in the depths of the global financial crisis, Katanga Mining [...] had lost 97 percent of its market value over

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