Capital Group, Emichrome ?
Who is selling $1.9 billion worth of shares?
An official release disclosing the details of the almost $2 billion trade has yet to be made. However, whispers of who the seller might be are already circulating.
Right now, suspicions are squarely directed towards The Capital Group. As reported by The Australian, the fund manager had engaged JPMorgan — the only book-runner in this $1.9 billion transaction — to exit $1.1 billion worth of Fortescue shares in June, which was also carried out at a discount.
There aren't many others who would fit the description. Looking at the shareholder register, Emichrome is the only other institutional investor holding around $1.9 billion.
The sale follows Fortescue's abrupt de-prioritisation of its green hydrogen dream. As James Mickleboro reported, the iron ore company announced major reduction measures on 18 July. As part of the move, Fortescue will be making roughly 700 roles redundant as it tries to stay 'lean and agile'.
Following this news, analysts at Macquarie indicated there could be ramifications among ESG-focused investors. By ratcheting down green hydrogen targets, Macquarie's analysts believe it may prompt a move-out, stating:
Fully Paid Ordinary Shares (M): 3,079
Another Shake-up in June 2024
The bottom line$$ gets us every time = a rude awakening for the FMG board of directors.
US$6.2 billion capital investment by 2030 to eliminate fossil fuel risk and reduce operating costs by US$818 million per year.
2924-02570003-6A1110329 (markitdigital.com)
Some Slides Below:
FMG FY22 - PowerPoint Presentation (markitdigital.com)
Hydrogen . Ammonia - PH2, IPL, FMG ..others
AEMO - speaks about the "Hydrogen Super Power" page 45
