Vladimir Kim and Oleg Novachuk, who are the key shareholders of KAZ Minerals, have renewed their buyout offer on February 4, 2021. The price of one share has risen from 640 English pence to 780. Moguls want to make an acquisition through Nova Resources B.V. (Bidco), another company they own. Given the new price, KAZ Minerals is currently estimated at £3.7 billion.
Oleg Novalchuk said he was satisfied with the agreement they’ve reached with KAZ Minerals’ Independent Committee.
«This new expanded offer is a good opportunity for KAZ Minerals shareholders to turn their investments into cash while the price is so attractive. It’s important because the company’s business becomes riskier,» Novachuk said.
According to the billionaire, «KAZ Minerals should be focused on a new strategy associated with Baimskaya Project; there are a lot of business risks and it requires more money. Therefore, we believe that the company may achieve better results as a private organization rather than public company.»
Chairman of the Independent Committee Michael Lynch-Bell described this renewed offer as significant. «This offer recognizes increasing risks for Baimskaya Project and at the same time will let investors sell their shares for a very attractive price,» he said.
«Based on our consultations with shareholders as well as our estimates, we as an Independent Committee recommend KAZ Minerals shareholders to accept this renewed offer,» stated Lynch-Bell.
In October 2020 Vladimir Kim and Oleg Novalchuk for the first time announced their plan to make a buyout. Both of them own 39.4% of the company’s shares and are its key shareholders.
However, in December 2020 several shareholders opposed the deal. As a result, Bidco had dropped its plan to repurchase shares and offered direct acquisition. The company is expecting to close the deal in the first half of 2021.