ASTANA (dpa-AFX) - Eurasian Natural Resources Corporation Plc (ENRC.L) Monday confirmed that its offer received from a consortium comprises 175 pence per share in cash, totaling around $1.6 billion, and 0.231 of an existing Kazakhmys Plc. (KAZ.L) share for each ENRC share.
The company made the announcement, after press speculation emerged regarding the terms of the offer.
The consortium consists of ENRC's three founders - Patokh Chodiev, Alijan Ibragimov, Alexander Machkevitch - and the Committee of the State Property and Privatisation of the Ministry of Finance of the Republic of Kazakhstan, which is acting on behalf of its Government, and JSC Sovereign Wealth Fund 'Samruk-Kazyna.'
At the time the proposal was presented on May 16 it referenced a Kazakhmys share price as at May 13 of 370 pence per share, which together with the 175 pence per share in cash represented a total price of 260 pence per ENRC share.
At market close on May 17, the Kazakhmys share price was about 338 pence per share.
ENRC's Independent Committee believes that the proposal materially undervalues the copper producer.
ENRC had said on Friday that it rejected the offer on the ground that the bid materially undervalues the firm. The Independent Committee requested the Panel on Takeovers and Mergers to extend the deadline to June 3 and the panel consented to it. By that time, the consortium must announce a firm intention to make an offer for the company or announce that they do not intend to bid.
ENRC said today that Kazakhmys is now deemed to be a paper offeror. Kazakhmys has a 26 percent stake in ENRC.
Copyright RTT News/dpa-AFX
© 2013 AFX News
