LONDON, June 24 (Reuters) - The board of Kazakh miner Kazakhmys, the single largest shareholder in miner ENRC , has said it will back a buyout bid for its troubled rival, an offer it characterised as the only “realistic opportunity” to sell out.
Support from Kazakhmys, with its long-problematic 26 percent stake in ENRC, was critical for the bidding consortium - ENRC’s trio of founders and the Kazakh government - who have now confirmed an offer valuing ENRC at around 3 billion pounds ($4.6 billion).
“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,” Simon Heale, Chairman of Kazakhmys said.
“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.”
Kazakhmys’ backing is ultimately subject to approval from its independent shareholders, due to vote in the coming weeks. Leading shareholders Vladimir Kim and chief executive Oleg Novachuk have already committed to giving their approval.