ENRC founders make lower takeover offer

Suzie Neuwirth

THE BILLIONAIRE founders of embattled miner ENRC have made a new takeover offer today of £3.043bn, valuing the firm at less than their indicative offer two months ago.

FTSE 100-listed Kazakhmys, which owns a 26 per cent stake in ENRC, has approved the offer and will recommend it to shareholders.

The consortium of bidders - led by ENRC founders Alexander Machkevitch, Alijan Ibragimov and Patokh Chodiev – had confirmed yesterday that they were “in the advanced stages” of putting together a firm offer ahead of the latest Takeover Panel deadline of 5pm today. They added that the offer was less valuable than it was in mid-May due to the fall in both mining stocks and the dollar.

“In the light of the significant issues currently facing ENRC and the prospects for ENRC and the impact on its value if the offer does not proceed, the board of Kazakhmys believes that the offer represents the only realistic opportunity to realise value for the group's investment in ENRC,” said Simon Heale, chairman of Kazakhmys.

“The board has acted to safeguard the offer for Kazakhmys shareholders and the ultimate decision on whether to accept the offer is for Kazakhmys shareholders.”