Renaissance Capital Ltd., the Russian investment bank part-owned by billionaire Mikhail Prokhorov, is suing a unit of Eurasian Natural Resources Corp. over an unpaid 9 million-pound ($14 million) bill for takeover advisory work.
RenCap is owed for its work, beginning in July last year, as financial adviser to Central African Mining and Exploration Co. in its sale, the Moscow-based bank’s lawyer, Andrew Popplewell, said today at the first day of trial in London.
Camec, which was acquired by Eurasian Natural Resources in September last year for about 584 million pounds, disputes the terms of the agreement with RenCap and how much is owed to the bank, according to court papers.
“Their original case was that Renaissance Capital was entitled to nothing,” Popplewell said. “It is now accepted that Renaissance Capital are entitled to be paid a substantial sum. The question is now, how much?”
ENRC spokesman Hugh Morrison declined to immediately comment.
Andrew Groves, the former chief executive officer of Camec who’s now CEO of Sable Mining Africa Ltd., and Toby Mannock, a RenCap metals and mining banker, may testify in the case, according to court papers.
The case is Renaissance Capital Ltd. v. Central African Mining and Exploration Co. Plc, case no. 10-264, High Court of Justice, Queen’s Bench Division (London).