ENRC metallurgical group began a major game in Kazakhstan

Last week, the largest manufacturer in Kazakhstan KazakhMys received an offer from the Eurasian Natural Resources Corporation of the purchase of their securities. To date, KazakhMys owns 26 percent of competitors. It is already known that the company will give a positive answer, because it considers such a turn of events the best option for itself and for the ENRC minority shareholders.

On June 24, the main shareholders of the Eurasian Natural Resources Corporation, together with the Government of Kazakhstan (their total share in the consortium is 55.42 percent) were offered by the Kazakhmys heads: 2.65 dollars in cash + 0.23 CAZAKHMYS shares. Thus, the cost of each ENRC share is 2.343 pounds, and the entire company is estimated at 3.043 billion pounds. Initially, the buyer’s management considered such an offer not very profitable, but after discussing with all participants in the consortium, conclusions were drawn that more favorable terms of the transaction are presented in the near future.

It also believes that in the near future an increase in the value of the Eurasian Natural Resources Corporation shares is unlikely. Therefore, today's proposal is the most optimal option for all parties. As a result of the purchase and sale of a stake package, KazakhMys will receive almost $ 887 million. cash and more than 77 million of their shares. Most importantly, the company will be able to significantly improve its financial situation and stability in the market. And this is very important in the light of the implementation of projects to expand production - Aktogai and Bozshakol.

As for ENRC, 2012 was, to put it mildly, not the most successful for the company. According to its results, the metallurgical giant showed a loss of $ 852 million, although in 2011 the group’s profit amounted to $ 1.986 billion. It is also important and is the fact that in parallel with negotiations on the sale of shares, the ENRC conducts an investigation, which was started back in April by the British Combating large financial fraud (Serious Fraud Office, SFO).