Johannesburg and London-listed resources firm, Glencore, on Wednesday said it intends to divest its non-core 23.9 percent stake in JSE-listed platinum miner, Lonmin, in the first half of this year.

Glencore inherited this stake when it acquired another resources firm, Xstrata plc, in May 2013. The divestment in Lonmin will be implemented by way of a distribution in specie to Glencore shareholders.

This distribution will not impact Glencore’s approach towards its annual cash distribution consideration, it said on Wednesday.

Glencore believes that a straightforward market disposal of the Lonmin stake at this time would not be in the best interests of its shareholders. The distribution in shares will enable shareholders to manage the investment for their own account.

The distribution will require shareholder approval and the necessary resolution will be put to shareholders at Glencore’s AGM on 7 May this year.

Glencore said it will maintain the constructive relationship it has developed with Lonmin until shareholder approval for the proposed distribution is obtained. Ivan Glasenberg, CEO of Glencore, said the Glencore investment philosophy is to hold investments in production assets in the commodities in which its trades.

“So we have always regarded the stake in Lonmin as non-core. As we do not trade platinum and have no special insight into the market, we believe that it is better to leave to our shareholders the decision as to how to manage the Lonmin shares,” he said.

“Our desire to distribute the Lonmin shares therefore reflects our philosophy not a view on Lonmin or platinum. We have developed a good relationship with Lonmin and its chairman Brian Beamish and CEO Ben Magara and recognise the determined efforts of the Lonmin management team to implement their strategy. Our senior management team do not currently plan to sell the Lonmin shares they would receive from the distribution in specie,” he added.