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Kazakhmys rejects ENRC offer
London, May 12, 2008
Interfax - Kazakhmys Plc, Kazakhstan’s copper maker, on Friday rejected an approach from Kazakh mining group Eurasian Natural Resources Corp Plc, which has a May 16 deadline to make an offer. Kazakhmys cited the low price of the offer as the reason for its rejection.
ENRC offered 1,550 pence per share, however, the board of Kazakhmys has considered and unanimously rejected the proposal from ENRC.
The total value of the offer 7.1 bl pounds ($13.7 bl.) It represents a discount of 19 percent to Kazakhmys's closing share price of 1,914 pence yesterday in London.
Kazakhmys dropped in London trading after its announcement, closing 128 pence, or 6.7 percent, lower at 1,786 pence, valuing the company at 8.1 billion pounds. ENRC closed 1.5 percent higher at 1,307 pence.
Kazakhmys biggest producer of ferrochrome and the sixth-largest iron ore exporter by volume, first said on March 12 it was interested in Kazakhmys. On April 11, Britain's Takeover Panel set ENRC a May 16 deadline to decide on a bid.
Kazakhmys, the world's 10th-biggest copper producer, is owned 45.8 percent by its Chairman Kim Vladimir while Chief Executive Novachuk Oleg has a 7.7 percent stake. (Reporting by Dan Lalor; Editing by David Cowell and Quentin Bryar)
ENRC, the world's biggest producer of ferrochrome and the sixth-largest iron ore exporter by volume, first said on March 12 it was interested in Kazakhmys. On April 11, Britain's Takeover Panel set ENRC a May 16 deadline to decide on a bid.