ENRC Holders Given to Aug. 28 to Accept Founders’ Takeover Bid

Eurasian Natural Resources Corp. (ENRC) shareholders have until Aug. 28 to accept a takeover bid from company founders and the Kazakh government, taking it private.

Eurasian Resources Group BV, with 54 percent of ENRC, today posted the offer document, it said in a statement. An acceptance by Kazakhmys Plc (KAZ), with 26 percent, made the bid unconditional.

Eurasian Resources, set up by the state and ENRC founders Alexander Machkevitch, Patokh Chodiev and Alijan Ibragimov, in June offered $2.65 in cash and 0.23 of Kazakhmys stock per share to take the company private. That was equivalent to 234.3 pence a share or 3 billion pounds ($4.65 billion), they said June 24.

The offer was valued at 227.9 pence based on Kazakhmys’s close of 247.90 pence in London. The founders sold ENRC at 540 pence a share in a London initial public offering in 2007.

ENRC traces its roots to the founders’ participation in 1990s privatizations of Kazakh state assets, gradually combined into a single group of companies and listed in London in 2007. The company is under investigation by the U.K.’s Serious Fraud Office over allegations of fraud, bribery and corruption in its activities in Kazakhstan and Africa.

Kazakhmys shareholders approved the deal on Aug. 2.

To contact the reporter on this story: Firat Kayakiran in London at fkayakiran@bloomberg.net

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

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