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Senior copper producer KAZ Minerals went private in $6 billion deal

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(Kitco News) - Nova Resources B.V. ("Bidco"), a company indirectly owned by joint offerors Oleg Novachuk and Vladimir Kim, today announced that its recommended increased cash offer for the entire issued and to be issued share capital of KAZ Minerals Limited, a senior copper producer based in Kazakhstan, had been declared unconditional in all respects.

Therefore, Bidco said that it has acquired the entire issued share capital of KAZ Minerals. According to a press-release, the final increased offer has been closed to further acceptances with effect from 1.00 p.m. (London time) on 15 June 2021.

The company added that the terms of the final increased offer published on 26 March 2021, when taken together with the special dividend, value the entire issued and to be issued share capital of KAZ Minerals at approximately £4.1 billion (~$5.8 billion), based on the dividend conversion rate.

In one of previous press-releases, Oleg Novachuk, Chairman of Bidco and Chairman of KAZ Minerals, said, "Mr. Kim and I are proud KAZ Minerals has made consistent progress as a public company since listing as Kazakhmys on the London Stock Exchange in 2005. During this period, it has demonstrated strong governance and delivered significant shareholder returns. However, KAZ Minerals must now focus on the execution of a higher risk, capital intensive strategy to deliver the Baimskaya project. Accordingly, we believe that KAZ Minerals' long-term interests are now best served as a private organization."

KAZ Minerals is a high growth copper company focused on large scale, low cost, open pit mining in Kazakhstan, Russia and Kyrgyzstan. In 2020, the company produced 306 kt of copper, representing a compound annual growth in production of c.30% between 2015 and 2020.

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