Kazakhmys holders approve ENRC sale to Machkevitch-led bidders
ASTANA. August 5. KAZINFORM Kazakhmys Plc shareholders approved the sale of its Eurasian Natural Resources Corp. stake, paving the way for ENRC's founders to take the mining company private.
They voted with more than 90 percent in favor of the bid by the founders Alexander Machkevitch, Patokh Chodiev and Alijan Ibragimov and the Kazakh government, according to a statement from copper producer Kazakhmys, which holds 26 percent of ENRC.
The group offered $2.65 in cash and 0.23 of Kazakhmys stock in June for each share in ENRC to take the ferrochrome producer private. That's equivalent to 234.3 pence a share or 3 billion pounds ($4.6 billion), they said. The founders sold ENRC at 540 pence a share in an initial public offering in London in 2007. Kazakhstan offered its 26.6 percent Kazakhmys stake for the bid, Kazinform has learnt from Bloomberg.
Kazakhmys "will accept the ENRC takeover offer or vote in favor of the ENRC takeover scheme," the copper company said in today's statement.
Kazakhmys, due to receive $875 million in cash and about 77 million of its own shares, plans to cancel the stock to increase publicly available equities to 58 percent from 37 percent. The company may need to book impairment charges after the deal, adding to a $2.2 billion writedown of its ENRC stake in March.
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