An undisclosed institutional investor was reportedly selling $1.9 billion worth of shares in Andrew Forrest’s Fortescue through JP Morgan on Monday night.
The Australian Financial Review said in its Street Talk column that the reported block trade would be worth up to 3.2 per cent of the iron ore and green energy company, which has a market capitalisation of about $62.6 billion, and would be at an 8.8 per cent to 6.1 per cent discount on its last close of $20.35.
Fortescue shares have fallen more than 30 per cent since January.
Multinational investment bank JP Morgan was reportedly on the ticket. The AFR has alluded to The Capital Group as being the potential group behind the trade but that has not been verified.
Any change in substantial shareholding will likely need to be disclosed to the ASX in the coming days once the reported transaction has settled.
It comes not two weeks after Fortescue made about 700 corporate staff redundant. At the time Fortescue also walked back on its goal of producing 15 million tonnes of green hydrogen by 2030, a target Mr Forrest said the division would achieve “eventually”.
Fortescue had a rare full-year export guidance miss for iron ore exports for 2023-2024 after a train derailment cut Fortescue’s transport link to the Herb Elliott Port in Port Hedland, the export gateway for its three iron ore mining hubs.
Fortescue lowered the bottom end of full-year guidance for this financial year to 190mt, with a top target of 200mt.