Kazakh Kazakhmys agree to sell its share in ENRC at offered price

Azerbaijan, Baku, June 24 / Trend E. Kosolapova/

Kazakhstan's Metallurgical Corporation Kazakhmys PLC made a statement on firm intention of Eurasian Natural Resources Corporation (ENRC) to sell its shares per $2.65 in cash plus 0.23 Kazakhmys shares each, the company reported on Monday.

"The Board of Kazakhmys believes that the Offer may undervalue ENRC and its assets but after seeking to engage with the ENRC Consortium and its constituent members, has concluded that there is no prospect of obtaining improved terms," the company said.

Moreover, the Board considers the prospects of realising greater value from ENRC in the short to medium term to be remote and the risks of further erosion in value to be considerable. The Board believes the Offer is the best alternative open to Kazakhmys and other ENRC minority shareholders.

The Eurasian Resources announced the offer on behalf of the ENRC Consortium comprising Mr Machkevitch, Mr Ibragimov, Mr Chodiev and the Government of Kazakhstan.

Based on the terms of the Offer, Kazakhmys will receive approximately $887 million in cash and 77,041,147 Kazakhmys shares, which will substantially strengthen the group's financial position during the development phase of the Group's major copper growth projects in Bozshakol and Aktogay.

The offer provides the group with an opportunity to end its association with ENRC and will increase the size of the free float in the company to up to approximately 58 percent of the voting share capital of the company as a result of Kazakh Government or Eurasian Resources, as the case may be, no longer holding Kazakhmys Shares (or a much reduced stake in Kazakhmys), creating a majority free float and significantly enhancing liquidity in Kazakhmys shares.

If the offer does not proceed, Kazakhmys has a number of concerns about any ongoing investment in ENRC.

In particular, Kazakhmys noted that the significant issues currently surrounding ENRC including in relation to corporate governance concerns and the ongoing Serious Fraud Office investigation into certain
allegations involving ENRC.

Moreover, given the corporate governance issues at ENRC and the size of the ENRC Consortium's shareholding in ENRC, the risk that ENRC could be removed from the FTSE index for noncompliance with the 25 percent free float condition or that a breach of certain continuing obligations of ENRC could result in ENRC being the subject of sanctions including, inter alia, fines and/or the suspension or cancellation of its listing.
There is a risk that the group's investment in ENRC becomes illiquid, which would be to the detriment of Kazakhmys shareholders and the potential requirement for ENRC to raise additional funds given mining inflationary pressures, commodity price volatility and ENRC's debt servicing requirements.

"Consequently, Kazakhmys has acted to safeguard the offer for Kazakhmys shareholders, and the other ENRC minority shareholders, by giving an irrevocable undertaking to accept the offer in respect of its entire shareholding in ENRC. The group's acceptance of the offer is subject to the approval of independent Kazakhmys shareholders, giving shareholders the ultimate decision on whether to accept the offer," the company said.

Kazakhmys PLC is a leading international natural resources group with significant interests in copper, gold, zinc, silver and power generation. It is the largest copper producer in Kazakhstan and one of the top worldwide with 16 operating mines,10 concentrators and 2 copper smelters. The company holds 26 percent shares in ENRC.

Subscribe to Trend in Google News! Subscribe
Kazakhstan ratifies agreements on military-technical assistance with Tajikistan and Kyrgyzstan
Kazakhstan ratifies agreements on military-technical assistance with Tajikistan and Kyrgyzstan
Turkmenistan, Tajikistan to attract small, medium businesses to joint projects
Turkmenistan, Tajikistan to attract small, medium businesses to joint projects
Kyrgyz border service reports shots from Tajikistan
Kyrgyz border service reports shots from Tajikistan
Loading Bars
Georgia's coal production up
Uzbekistan shares data on sales of oil and gas products in 11M2021
Uzbekistan and Kazakhstan sign trade contracts and bilateral agreements
Azerbaijan shares forecast on volume of oil production from ACG field for 2022
Iran records increase in cargo transportation via Bushehr International Airport
bp presented laboratory to be named after Nobel Prize winner
Azerbaijan provides with insurance payments heirs of martyrs, soldiers wounded due to Armenian provocation on Nov. 16
Azerbaijan projects growth in gas production from Shah Deniz field in 2022
Iran sees decrease in number of new mines
Volume of loaded/unloaded cargo in Iran’s Anzali port climbs
EIA names factors triggering wider spread between sweet and sour crude oils
Azerbaijan to install seismic stations in liberated lands until 2025
VISA talks investments in dev’t of its own IT-technologies (Exclusive)
‘Tripartite contract’ could turn Iran into regional transit center - Iranian president
Iranian President talks about nuclear discussions
Financial market of Azerbaijan – review of week’s main events
Equinor to acquire 45% stake in Noriker Power Limited
Iran's SATBA reveals details of country's renewable energy generation
Iran's NIORDC to sign contract for producing dual-fuel taxis with local manufacturer
Private investors in Iran apply to boost renewable energy development countrywide
New economic construction must be ensured in Azerbaijan's Karabakh - president's special representative
Azerbaijan reveals insurance payments to heirs of servicemen who died in helicopter crash
Azerbaijan pays great attention to dev’t of innovations, technologies - executive power
Iran to unveil plan for development of rail fleet for its mines
TAP’s technical forward capacity by Dec.12
Only innovative technology-based enterprises to function in Azerbaijan's liberated lands - deputy minister
Physical gas flows, nominations at TAP’s interconnections
Azerbaijan creating innovative financial, banking services in Karabakh
Participants of Second Karabakh war, families of martyrs living, working in Azerbaijan’s liberated territories to be provided with benefits
Negotiations with several enterprises to attract investors to Aghdam industrial park nearing completion – deputy minister (PHOTO)
Iran eyes increase in activities in Chabahar port
Iran records increase in exports from Gilan Province
Turkey discloses cargo shipments via its ports from Bulgaria in 10M2021
Azerbaijan eyes several directions for innovative development of liberated areas - deputy minister
UK to require travelers from Azerbaijan to submit negative PCR test
Iran sets increase of monthly salary in budget bill for next year
Decision makers in Iran realize going forward without JCPOA is wrong - analyst
Iran negotiating with Russia to lift bell pepper export restrictions
Pace of LNG supply growth in Asia forecast to slow down
Mariana Vasileva expresses gratitude to President Ilham Aliyev, First Vice-President Mehriban Aliyeva
Iran set to reform its insurance sector
Iran relying on domestic car manufacturers to increase production by 2025
Global LNG sector poised to post healthy export growth this year
Georgia releases COVID-19 data for December 6
Iran planning to increase steel production for domestic needs and export
Iran to reform rules for startup companies to participate in stock market deals
Azerbaijani currency rates for December 6
Iran hopes to raise local car manufacturing
Iranian currency rates for December 6
CAMEX International launches cargo airline in Georgia
Overall index of the Tehran Stock Exchange drops on December 5
Turkey reveals cargo traffic via its ports from US for 10M2021
Azerbaijan shows footage from Kalbajar's liberated Kechiligaya village (VIDEO)
Uzbekistan shares domestic COVID-19 data for December 5
Turkey discloses number of docking ships at Bandirma port for 10M2021
Azerbaijan discloses turnover of investment companies for 11M2021
Uzbek Direct Investment Fund and South Korean company co-op to attract investments
Cargo movements in Iran’s Bushehr port up
Iran shares data on exports via customs of Semnan Province
Azerbaijan interested in Turkish "Hürkuş" trainer aircraft - Turkish Defense Industry
Cargo transportation via Iran's Kerman International Airport soars
IRICA reveals data on Iran’s saffron exports
Weekly review of Azerbaijani oil prices
Poor weather hampers search and rescue efforts at Indonesia volcano
S.Korean president's approval rating rises to 40.5 pct: poll
Iran's trade turnover with Azerbaijan booming - IRICA
Kazakhstan adds 632 new daily cases of COVID-19
Bob Dole, longtime U.S. senator, presidential candidate, dies at 98
Hamilton wins wild Saudi GP to set up F1 title showdown
Turkey confirms 19,357 daily COVID-19 cases
Islamic State fighters kill five in attack near northern Iraqi village
Omicron cases in UK rise by 50 pct in one day
Twelve Niger soldiers killed in clashes with militants
China donates Sinopharm COVID-19 vaccines to Somalia
Cases of Omicron variant rise to 11 in Israel
Fire rages on cargo ship carrying timber off Sweden
Germany plans to make vaccination compulsory for some jobs
Number of Turkish citizens seeking job in Georgia notably grows
German companies sign contracts with Azerbaijan in railway construction
Erdogan-Al Thani meeting to boost Turkey-Qatar ties: Ambassador
Myanmar court to give first rulings in Suu Kyi trial
Erdogan to chair Turkey-Qatar Supreme Strategic Committee in Doha
Iran stresses need for long-term cooperation with Kyrgyzstan
35.6% of Georgian adult population fully vaccinated
Indonesia Semeru volcanic eruption kills 14; dozens injured
Three skiers killed and two injured in Austria avalanche
Uzbekistan shares data on interest expenses of banking sector
Flights from Iran’s Abadan International Airport increasing
Germany's Free Democrats back coalition agreement
Arab Coalition destroys 14 vehicles, kills more than 115 Houthis
Iran’s Bahar Azadi gold coin price continues to rise
Kyrgyz Cabinet aims to increase share of electric vehicles in country
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,394 more COVID-19 cases, 1,791 recoveries
Kazakhstan increases petroleum oil exports to France
Volume of cargo loaded/unloaded in Iran’s Bandar Lengeh port decreases
Iran boosts aluminum ingots production
COVID-19: 11 areas of Kazakhstan in ‘green zone’
Cargo train services launch between Georgia, China
Iran reveals COVID-19 data for December 5
All news