Kaz Minerals Takeover Faces Resistance From Another Investor

(Alliance News) - Kaz Minerals PLC GBP3.0 billion buyout from Nova Resources BV faced additional investor opposition on Tuesday, after a Russia-based shareholder said the offer does not reflect the miner's value.

CFC Management LLC, an investment advisor representing a 3.6% stake in Kaz, said its clients will vote against the deal.

"CFC Management's clients object to the current offer price and believe that it does not reflect the company's fair value and growth potential," CFC said on Wednesday.

CFC Chief Executive Officer Ekaterina Chernova added that Nova's 640 pence per share offer "takes advantage" of the fact that Kaz's stock has been hit by Covid-19 an US election uncertainty in recent months.

Kaz Minerals shares closed 1.5% at 640p each on Thursday and are up 20% so far this year. Shares traded as low as 269.10p in March.

On Monday, RWC Partners, holder of a roughly 3% stake in Kaz, also said the offer undervalues the firm.

Nova Resources is a company owned by a consortium comprising Kaz Minerals Chair Oleg Novachuk and Non-Executive Director Vladimir Kim.

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.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.