ENRC endgame in sight as 95pc accept takeover

Suzie Neuwirth
THE CONSORTIUM bidding to take over troubled FTSE 100 miner ENRC yesterday said that the majority of shareholders had agreed to their offer, bringing the number of acceptances up to 94.5 per cent and effectively signalling that the deal will go through.

The bidders – led by ENRC’s three billionaire founders – already have the support of ENRC’s largest shareholder Kazakhmys, which has a 26 per cent stake, and 14.6 per cent of other shareholders who took up the offer by the first deadline for acceptances on 28 August.

Combined with the 54 per cent held by the founders and the Kazakhstan government, acceptances now equal almost 94.5 per cent.

The remaining shareholders have until an extended deadline of 11 September to take up the offer, which is not conditional on acceptances.

The key hurdle that the bidders need to overcome is antitrust approval, which Deutsche Bank thinks may delay the deal and require an extension beyond the September deadline.

The bidding consortium would not disclose any details about the antitrust conditions but it is believed that the main concern is around the ENRC founders’ stake in a chrome miner in South Africa, which could overlap with ENRC’s operations there.

The £3bn offer will take ENRC private after six turbulent years. Shares closed 0.6 per cent lower at 228.90p.