(Alliance News) - Kaz Minerals PLC on Wednesday announced that has agreed to a GBP3.0 billion takeover offer made by Nova Resources BV, which already holds a 39% stake in the FTSE 250 miner.
Nova Resources is a company owned by a consortium comprising Kaz Minerals Chair Oleg Novachuk and Non-Executive Director Vladimir Kim.
Under the acquisition's terms, Nova will acquire Kaz Minerals for 640 pence per share, reflecting a 12% premium to the group's closing price of 570.8p on Tuesday.
Shares in Kaz Minerals were up 9.7% at 626.20 pence on Wednesday in London, giving a market capitalisation of GBP2.96 billion. As of Tuesday's close, Kaz shares were up 7.4% so far in 2020.
The acquisition is conditional on gaining at least 75% in shareholder approval at both the court meeting and general meeting, which is expected to be held either in December or early January 2021.
It also needs the receipt of antitrust clearances and regulatory approvals, as well as the scheme being sanctioned by the High Court of Justice in England and Wales.
Kaz expects the acquisition to be completed in the first half of 2021. So far Nova Resources has obtained irrevocable acceptances from around 29.0 million shares in Kaz, a further 6.1% of the company's shares, giving the bidders acceptances or ownership of 45% of the company.
"Following extensive negotiations, the independent committee of Kaz Minerals intends to unanimously recommend the acquisition to Kaz Minerals shareholders as it represents an opportunity for Kaz Minerals shareholders to realise their investment in Kaz Minerals at a premium in cash in the near term. We believe the offer provides a fair value for Kaz Minerals' operating assets and development portfolio, and crystallises a value for Baimskaya that reflects the independent committee's view of the increasing risks in this project," said Senior Independent Director Michael Lynch-Bell.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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