FILE PHOTO: The Trafigura logo is pictured at the company entrance in Geneva, Switzerland March 11, 2012. REUTERS/Denis Balibouse
(Reuters) – Belgian metals and mining company Nyrstar’s major shareholder Trafigura Group is set to take control of the company as part of a recapitalization effort, Nyrstar said on Monday.
Nyrstar said it would sell its operating group to a newly incorporated subsidiary, NewCo. As part of its recapitalization, commodities trader Trafigura will be issued 98 percent share capital of NewCo.
Trafigura will provide up to $250 million to strengthen the group’s liquidity position, Nyrstar said.
Reporting by Ishita Chigilli Palli in Bengaluru; Editing by Gopakumar Warrier