Kazakhstani Moguls Kim and Novachuk Might Completely Buy Kaz Minerals Out

Kazakhstan, Kyrgyzstan and China have approved the deal

Nova Resources (Bidco) company, which is controlled by the key shareholders of KAZ Minerals Vladimir Kim and Oleg Novachuk, has gotten permission from regulators in China, Kazakhstan and Kyrgyzstan to buy out KAZ Minerals, according to London Stock Exchange website.
As Nova Resources reported, the deal was fully approved by the Chinese State Administration for Market Regulation. The agency has said that it will not go further to examine the deal.

The Ministry of Industry and Infrastructure Development of Kazakhstan has also permitted Nova Resources to acquire KAZ Minerals and approved the transfer to the company of all relevant mineral rights under the Kazakhstani Natural Resources Code.

The prime minister of the Kyrgyz Republic also has no objections against the deal. The Kyrgyz government has waived the right of pre-emptive purchase as it is provided by the national law on strategic assets.

In October Kim and Novachuk, who both own 39% of KAZ Minerals shares, offered minorities to buy out their shares to make the company private once again. The estimated price of the purchase is 640 of English penny by cash. At the moment of the initial offer (October 27) it had 12% equity premium.
However, a minority of shareholders, who own only 10.63% of KAZ Minerals shares, have agreed to sell their shares. Thus the shares of Kim and Novachuk in KAZ Minerals might be increased to 50.02% combined.

In December, when some minorities rejected the offer, Nova Resources changed the conditions of the deal – now the company wants to not only buy out shares, but to make a direct acquisition. 

Nova Resources will prepare a new offer for minority shareholders on February 4. As major shareholders and the top executive managers are expecting, the deal might be closed in the first half of 2021.

On Monday, January 11, the shares of KAZ Minerals on the LSE rose by 1.27%, to 715 pence per one share.

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