Kazakhstan could raise stake in ENRC - minister
ASTANA. June 17 (Interfax) - Kazakhstan may increase its stake in Eurasian Natural Resources Corporation (ENRC), Kazakh Economy and Budget Planning Minister Erbolat Dosaev said.
"We think that at least will keep the shareholding in this company. If the opportunity allows, we will raise it. I think an increase of the state share in ENRC is likely given the exchanges of ENRC and Kazakhmys shares that is taking place," he said at a Monday briefing at the Central Public Affairs Service under the President of Kazakhstan.
The minister said the final decision will be taken after confirmation of the proposal made by ENRC private shareholders to buy back shares of the group.
"The state sees ENRC as one of the most important mining assets in the country, so the proactive participation of the state in this company is expected," said Dosaev.
He also emphasized the fact that the government "has yet to enter into the transaction."
"We are under way, the preliminary proposals were made to the government and the government gave its opinion. (...) My personal opinion is that the state will keep its stake in ENRC and will actively participate in the development and management of the company," said the minister.
The three founders of ENRC - Alexander Machkevitch (14.59%), Alijan Ibragimov (14.59%), Patokh Chodiev (14.59%) - and the Kazakh government in the person of the State Property and Privatization Committee of the Finance Ministry (11.65%) set up a Consortium in May 2013 to buy back the shares from the ENRC minority shareholders, which may eventually lead to ENRC delisting from the LSE.
According to the initial proposal made on May 16, 2013, the minority shareholders of ENRC were offered 175 pence in cash, or $1.6 billion in total, and 0.231 shares of Kazakhmys Plc for each share held. However, the Independent Committee disagreed with the offer saying that "the initial proposal materially undervalued ENRC" and asked the Panel to extend the deadline hoping for a better proposal from the Consortium.
JSC National Welfare Fund Samruk-Kazyna transferred 58.89 million shares (11.24%) in Kazakhmys plc to the Kazakh Finance Ministry's State Property and Privatization Committee, according to ENRC shareholder Alexander Mashkevitch.
The government, Chodiev, Ibragimov and Machkevitch made an indicative proposal on May 16, 2013 to the Independent Committee of the Board of Eurasian Natural Resources Corporation PLC (ENRC). The Proposal envisaged that the 139.162843 million shares (26.57%) in Kazakhmys held by the government would be used as consideration in any offer to acquire the entire issued and to be issued share capital of ENRC (other than the ENRC shares held by the government, Chodiev, Ibragimov and Machkevitch).
Eurasian Natural Resources Corporation (ENRC) was created in late 2006 as a result of reorganization of Eurasian Industrial Association. Currently, ENRC owns and operates assets in Kazakhstan, Brazil, Zambia, Zimbabwe, South Africa, Mali, Mozambique and Congo. ENRC is listed on the London Stock Exchange, the Hong Kong Stock Exchange and the Kazakhstan Stock Exchange.