Kazakhmys makes cash and shares offer for ENRC holding

Resource company Kazakhmys has made an offer of $2.65 (£1.72) and 0.23 Kazakhmys shares per ENRC share (release). That brings the total to about 234.9p, or around that reported by press this weekend.

Based on the terms of the Offer, Kazakhmys will receive approximately U.S.$887 million in cash and 77,041,147 Kazakhmys Shares, which will substantially strengthen the Group's financial position during the development phase of the Group's major copper growth projects, Bozshakol and Aktogay.


The Board of Kazakhmys believes that the Offer may undervalue ENRC and its assets but after seeking to engage with the ENRC Consortium and its constituent members, has concluded that there is no prospect of obtaining improved terms;

Simon Heale, chairman of Kazakhmys, said:

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. 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.

The Board is confident in the future prospects of Kazakhmys, including the development of the Group's large scale, long life, low-cost copper growth projects and in the fundamentals of the copper industry. The Board believes the reinvestment of the cash proceeds from the Group's holding in ENRC into its core business and the strengthening of the Groups financial position will create greater value for all stakeholders.