ENRC Founders Win 95.5% Takeover Support, Extend Bid

Eurasian Natural Resources Corp.’s founders won approval from 95.5 percent of shareholders for their plan to acquire the ferrochrome producer and extended their offer to Sept. 25 for the remaining investors.

Eurasian Resources Group BV, owner of 54 percent of ENRC, gained acceptances from 15.7 percent of shareholders as of yesterday, it said today in a statement. Total support for the offer reached 95.5 percent when including the “irrevocable undertaking” from Kazakhmys Plc, which owns a 26 percent stake.

Eurasian Resources, set up by Alexander Machkevitch, Patokh Chodiev and Alijan Ibragimov along with the Kazakh government, offered $2.65 in cash and 0.23 of a Kazakhmys share for each ENRC share in June. The bid, which they said was equal to 234.3 pence a share, compares with the 540-pence price of ENRC stock in an initial public offering in London in 2007. They valued the latest offer at 3 billion pounds ($4.7 billion).

ENRC 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.

Kazakhmys shareholders approved the deal on Aug. 2.