Wednesday, June 4, 2014
Wellington Management Cuts Stake in MMC to Under 5% (1)
(Corrects ING to BNP Paribas in last paragpraph)
June 3 (Cover Mongolia) Wellington Management, one the world’s largest private investment management firms with US$869 billion client assets under management as of 31 March, 2014, has cut its stake in Mongolian Mining Corp. (HKEx:975) to 4.99% from 5.03%.
Previously, Cover Mongolia had reported that Wellington had become a substantial holder in MMC, purchasing 2.6 million shares on the exchange at HK$0.80 on 5 February, 2014 to claim a 5.01% stake.
Looking at the two notices filed, Wellington had bought 571,722 shares between 5 February – 29 May to increase its stake since from 5.01% to 5.03%. Under exchange rules, a substantial holder needs only to disclose share transactions when crossing over a whole percentage point mark.
This time, the company sold 1,130,500 shares at HK$0.596 on 29 May, also on the exchange, to cease being a substantial shareholder.
This disclosure was made public after Tuesday HKEx close. MMC closed the day down 1.67% and has dropped 42.16% in 2014 on continued weak coking coal sentiment from China, despite having eased its short-term debt obligations with a $150 million loan from BNP Paribas and ICBC to refinance a $130 million debt to BNP Paribas.