ENRC founders get 21-day extension on bid for company
ALMATY. June 4 (Interfax) - The U.K. Panel on Takeovers and Mergers has agreed to extend to June 24 the deadline for the consortium organized by the founders of Eurasian Natural Resources Corporation (ENRC) and the Kazakh government, ENRC says in a press release published by the London Stock Exchange (LSE).
By the revised date the consortium must either announce a firm intention to make an offer for ENRC or announce that it does not intend to make an offer.
The three founders of ENRC - Alexander Machkevitch (14.59%), Alijan Ibragimov (14.59%), Patokh Chodiev (14.59%) - and the Kazakh government via 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.
Kazakhmys explained in a press release dated May 20, 2013 that its shares that were indicated in the initial proposal will represent the entire existing 26% shareholding of the Government of Kazakhstan, one of the Consortium members, in Kazakhmys.
The board of Kazakhmys welcomed the 21 day extension.
"The board welcomes the extension, made in response to a request from the bidding Consortium, which should provide time for discussions to continue and allow the Consortium to put a formal proposal for the Independent Committee and shareholders of ENRC, including Kazakhmys, to consider," Kazakhmys says in a press release published on the LSE.
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.
Kazakhmys plc is a leading international natural resources group with significant interests in copper, gold, zinc, silver, power generation and petroleum. The company trades on the London Stock Exchange (LSE), the Hong Kong Stock Exchange (HKSEx) and the Kazakhstan Stock Exchange (KASE).