Kazakhmys Plc announced the sale of its interest in Eurasian Natural Resources Corp, also known as ENRC. With the approval of the sale from the company's board, incorporators are now closer to accomplishing the proposed privatization of the firm. The incorporators of ENRC include the Kazakh government, alongside Alexander Machkevitch, Patokh Chodiev, and Alijan Ibragimov. The group currently owns 26% of ENRC. The proposal presented by the group was unanimously approved by shareholders of ENRC. Eurasian Natural Resources Corp is the natural resources company based out of the United Kingdom, whose main business is to explore the potential of Kazakhstan's natural assets.
The group offered the ferrochrome producer 0.23 of Kazakhmys stock and US$2.65 for each share in ENRC. The offer was equivalent to an estimated 234.3 pence a share or GBP3 billion (US$4.6 billion). The ENRC founders sold ENRC in an initial public offering in 2007 with 540 pence a share.
ENRC said in a statement, "Kazakhmys will accept the ENRC takeover offer or vote in favor of the ENRC takeover scheme."
Kazakhmys Plc is set to receive an approximately US$875 million in cash from the sale. Kazakhymys will also receive 77 million worth of its own shares from the deal. The company plans to cancel its stock to raise publicly available equities of Kazakymys to 58% from the previous 37%. Kazakhmys Plc may opt to book impairment costs after the closing of the deal which will add an additional US$2.2 billion write-down for its ENRC stake.
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