According to the group, the deal will be the largest deal in Europe and the CIS metallurgical industry in 2021
The group said on Friday that VTB Group has completed the acquisition of shares in KAZ Minerals by the consortium Nova Resources, which is owned by the company’s largest shareholders, Vladimir Kim and Oleg Novachuk. VTB acted as the financial advisor and financing bank of Nova Resources, handling the proposed tender offer to acquire KAZ Minerals shares for 3.5 billion U.S. dollars, as well as the sole financing arranger for the transaction, with a total amount of 5.7 billion U.S. dollars, including an auxiliary line that wrote, Refinancing the current debt of the mining company Kazakhstan Interfax News Agency.
-“This transaction is the largest transaction in the metals and mining sectors in Europe and the Commonwealth of Independent States in 2021, and is the second largest acquisition listed on the London Stock Exchange,”-said in a statement issued on Friday.
“Vladimir King and I are very pleased that our offer to acquire KAZ Minerals shares has been declared unconditionally valid. KAZ Minerals is able to provide attractive returns to shareholders of listed companies, but, given that the company is about to transition to the next The stage of large-scale development, including the development of the Baimskoye oil field in Russia, we think it will be the most important.” said the chairman of the board of directors of Nova Resources Oleg Novachuk, whose words were quoted in the news.
Vladimir Kim and Oleg Novachuk announced on October 28, 2020 that they intend to acquire a mining company through their Nova Resources BV and make an offer to minority shareholders . In order to pay for the buyout funds, Nova is attracting loans from VTB. The repurchase price was initially set at 6.4 pounds per share, but later due to dissatisfaction with some minority shareholders, the repurchase price was increased to 7.8 pounds. However, the new price is not suitable for some shareholders, who think the price is too low. As a result, KAZ Minerals increased the offer price to 8.5 pounds, and taking into account the special dividend, the final offer price for major shareholders was 8.69 pounds per share.
In April, as everyone knows, the terms of the offer to buy back KAZ Minerals shares have been accepted by the owners of the mining company’s 49.8% shares. Therefore, taking into account the 39.37% of KAZ Minerals, the majority shareholders of KAZ Minerals, Vladimir Kim and Oleg Novachuk, will merge 89.17% of KAZ Minerals. Now, KAZ Minerals will require the London Stock Exchange and the British financial regulator FCA to suspend the trading of KAZ Minerals shares on the LSE-listed securities market and delist its shares. It is expected that the trading of KAZ Minerals shares on the Kazakhstan Stock Exchange will also cease.
Vladimir Kim and Oleg Novachuk link this proposal to KAZ Minerals’ decision to adopt a capital-intensive strategy focused on long-term growth, which may cause some Disagreement among investors. One of the company’s main priorities is the implementation of the giant Baimsky copper project in Russia, which recently raised its capital expenditure estimate to approximately US$8 billion.
KAZ Minerals, one of Kazakhstan’s major copper producers, also produces zinc, silver and gold as by-products.
The terms of the offer to buy back KAZ Minerals shares have been extended again
After purchasing the shares of the minority shareholders of the agreement, the main owner will merge 59.3% of the company