Kazakhmys Gets $887.3 Million in Cash Plus Shares From ENRC SaleFirat Kayakiran
Kazakhmys Plc received $887.3 million in cash and about 77 million of its own shares on Nov. 8 from the sale of its 26 percent stake in Eurasian Natural Resources Corp. to the ferrochrome producer’s founders.
Kazakhmys will cancel the shares it received, the London-based company said today in a statement. It transferred 206.5 million pounds ($330 million), which was provided by the founders as part of the transaction, to repurchase the shares.
A venture 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 price of ENRC stock in an initial public offering in London in 2007.
ENRC’s founders last month gained acceptances from 96.7 percent of shareholders for their offer and plan to take the company private on Nov. 25.
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. 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.