ENRC Founders Plan Nov. 25 Delisting as 96.7% Accept Bid
Eurasian Natural Resources Corp. (ENRC)’s founders gained acceptances from 96.7 percent of shareholders for their offer to acquire the ferrochrome producer and will seek to take it private on Nov. 25.
Eurasian Resources Group BV, owner of 53.88 percent of ENRC, had approval from 42.86 percent of shareholders as of yesterday, it said in a statement. That includes the 26 percent stake Kazakhmys Plc (KAZ) owns in ENRC.
Eurasian Resources, set up by Alexander Machkevitch, Patokh Chodiev and Alijan Ibragimov, offered, along with the Kazakh government, $2.65 in cash and 0.23 of a Kazakhmys share for each one in ENRC in June. The bid, which the buyers said was equal to 234.3 pence a share, compares with the 540-pence ENRC stock was sold at in an initial public offering in London in 2007.
“All conditions relating to the offer have either been satisfied or waived,” the bidding group said today. “The offer is declared unconditional in all respects.” It remains open to acceptances from the outstanding shareholders.
ENRC advanced 1.5 percent to 224.2 pence as of 12:40 p.m. in London, valuing the company at 2.88 billion pounds ($4.7 billion).
ENRC will apply for delisting from the London Stock Exchange on Oct. 28 and to take the company private 20 business days later, according to today’s statement. ENRC will also end trading on the Kazakhstan Stock Exchange.
The metals producer traces its roots to the founders’ participation in the 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 at its operations in Kazakhstan and Africa.
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