The three pillars of Eurasian Natural Resources Corp is set to lead a consortium seeking to privatize the mining firm. One of its moves is to seek an extension for the deadline in putting together a bid for the mining company, as confirmed by two individuals who spoke on condition of anonymity.
The consortium has asked an independent committee of the ENRC's board for a three week extension minimum to the current UK Takeover Panel to be set on June 3, 2013 at 5:00 pm. The time would be utilized to formalize the previous initial proposal it had submitted or even drop that plan altogether. The major delay on the bid is the legal complexities involved in the formation of the bidding consortium as it includes the government of Kazakhstan. It reiterated that there is no issue as to funding the offer, according to one of the anonymous sources.
The three pillars are the founders of ENRC, namely Alexander Machkevitch, Patokh Chodiev and Alijan Ibragimov and they want to privatize the company after its London IPO five years ago. According to the independent committee that was established by the ENRC board who evaluated the offer made last month, the said offer 'materially undervalues ENRC.'
The three moguls have put together US$1.6 billion for the cash payment of the buyout and the Kazakh government is offering an exchange for 26% of its shareholdings in Kazakhmys Plc. The moguls and the government combined would own 54% of the firm.
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