BAKU, Azerbaijan, Apr. 23
By Nargiz Sadfikhova - Trend:
Kazakhstan’s Kazatomprom National Atomic Company JSC signed the Sale and Purchase Agreement (SPA) for the sale of a 49 percent share of Ortalyk LLP to a subsidiary of China General Nuclear Power Corporation (CGNPC), Trend reports citing the Kazatomprom.
Within the Kazatomprom-CGNPC cooperation agreements, the parties are currently cooperating to construct a fuel assembly plant (Ulba-FA) at the Ulba Metallurgical Plant. CGNPC provided a guarantee that Ulba-FA’s production will be purchased by CGNPC, in exchange for Kazatomprom agreeing to sell to CGNPC or its affiliates, a 49 percent interest in the Company’s wholly-owned subsidiary, Ortalyk LLP.
The SPA was signed on Apr. 22 and the parties agreed to the valuation determined by one of the four major international advisory and professional services firms, whereby a 49 percent share of the operation was assessed at a value of approximately $435 million.
The Transaction is subject to conditions, governmental, and legislative approvals, and is expected to close by June 30, 2021.
Upon completing the Transaction, Kazatomprom will retain a controlling 51 percent interest and CGNPC or its affiliates will acquire a 49 percent interest in Ortalyk LLP, with each partner purchasing a proportionate share of uranium production from the operation according to interest.
Ortalyk Production enterprise LLP is a legal entity established as a limited liability company with 100 percent participation of NAC Kazatomprom JSC prior to the transaction.
Kazatomprom is the world's largest producer of uranium, with the Company’s attributable production representing approximately 23 percent of global primary uranium production in 2020. The Group benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs and Associates, 26 deposits grouped into 14 mining assets.
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