US-based Capital Group sells Fortescue shares worth A$734m

19th June 2024

By: Reuters

  

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US-based investment management firm Capital Group Companies has sold shares worth A$733.9-million in Australian miner Fortescue, according to an exchange filing on Wednesday.

The announcement came after the Australian Financial Review reported on Tuesday that an institutional investor had sold off a A$1.1-billion stake in billionaire Andrew Forrest-led Fortescue after the close of trade on Monday.

Capital Group Companies and affiliated entities pressed sell on 31.6-million shares in the miner on Friday, the filing showed.

The price at which the shares were sold is not clear. However, they are estimated to be worth about A$733.9-million based on Fortescue's Friday close of A$23.2.

Capital Group declined to comment on the sale price and the rationale behind the sale when Reuters contacted.

Shares of the world's fourth-largest iron-ore miner have fallen nearly 25% so far this year, given weakening iron-ore prices amid subdued demand in top steelmaker China.

Fortescue has also seen a high turnover of senior management amid a push to turn itself into a green energy company.

Edited by Reuters

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