ENRC investors back $650m coal purchase

 
City A.M. Reporter
INDEPENDENT shareholders in ENRC yesterday approved the Kazakh miner’s $650m (£405.7m) acquisition of the outstanding 75 per cent of Kazakh coal producer Shubarkol Komir from its founder investors.

At a meeting yesterday, 96 per cent of the shareholders that voted supported the deal, ENRC said.

Shareholders – excluding the three founder investors – had been due to give their approval to the deal in November, but the miner delayed the vote, blaming volatile market conditions and citing shareholder requests.

ENRC says the acquisition, for up to $600m plus assumed debt of around $50m, will give it access to cheap coal for its existing operations and expansion plans, supporting the group’s low-cost profile.

It is also the first deal with ENRC’s founder shareholders since it completed a corporate governance review in September, after a bruising disagreement between the founders and some board members.