EMBATTLED Kazakh miner Eurasian Natural Resources Corp (ENRC) saw its shares close at 284.1p yesterday, down 2.2 per cent after a flurry of senior executives handed in their resignations.
The FTSE 100-listed company’s share price soared 25 per cent on Friday after a trio of Kazakh oligarchs – Alexander Machkevitch, Alijan Ibragimov and Patokh Chodiev – along with the Kazakh government, announced their intentions to launch a buyout offer for the company.
However, with no formal offer on the table yet, the stock remains the subject of speculation.
It is understood that the respective entities are currently in discussions over details such as the deal value.
“It would be a bold move to up or downgrade them at the moment as there has been no indication of pricing given by the consortium of potential investors,” Mike van Dulken, head of research at Accendo Markets, told City A.M.
“I think the shares could trade within its highs and lows until more clarity emerges.”
Meanwhile Ronnie Chopra, head of strategy at Tradenext, expects the stock to gain in the near future.
“The shares are so low at the moment that I think they will rebound fairly strongly in the next few days,” he said.
In Friday’s statement, Machkevitch said that deliberations over a potential takeover bid are at “a very preliminary stage”, that there was no certainty that a deal would be made and that no terms had been finalised.
Societe Generale is advising the consortium of investors on the possible deal.