ENRC Founders Said to Detail Offer Below 300 Pence in Bid Letter

Eurasian Natural Resources Corp.’s three founding shareholders sent a letter with details of a planned bid for the company at a price of less than 300 pence a share to its independent committee of directors, according to people familiar with the matter.

The founders, who said April 19 they have formed a group with the Kazakh government to consider a takeover, will probably seek an extension of the deadline for making a formal proposal, the people said, asking not to be identified because the information isn’t public.

ENRC founders Alexander Machkevitch, Patokh Chodiev and Alijan Ibragimov, together with the Kazakh government, are considering taking the company private, Machkevitch said last month. The group, which owns 54 percent of ENRC, was given until today to make a formal proposal. Kazakhmys Plc (KAZ), Kazakhstan’s biggest copper producer, owns 26 percent of ENRC.

Representatives of the bidder group, ENRC and the independent committee of directors all declined to comment.

ENRC’s assets include iron ore, ferroalloy and power production operations in Kazakhstan, copper and cobalt businesses in Africa and a Brazilian iron ore project.

The company traces its roots to the founders’ participation in the 1990s privatizations of Kazakh state assets, which were gradually combined into a single group of companies and listed in London in 2007.

To contact the reporters on this story: Firat Kayakiran in London at fkayakiran@bloomberg.net; Matthew Campbell in London at mcampbell39@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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