Eurasian Natural Resources Corp (ENRC) has rebuffed a US$4.67 billion takeover bid by a consortium comprising the Kazakh government and the founders of ENRC.

Newly-formed consortium Eurasian Resources Corp said in a statement that it offered to buy ENRC – one of Central Asia’s largest miners with operations in Kazakhstan, China, Russia, Brazil and Africa – after rival Kazakhmys agreed to sell its 26% stake. But ENRC officials rejected the offer out of hand, saying it “materially undervalues the company,” and that their company “cannot recommend the offer to ENRC shareholders at the current level.”

The consortium, including ENRC founders Alexander Machkevitch, Alijan Ibragimov, Patokh Chodiev and the Kazakh government, is seeking to de-list the company from the London Stock Exchange to boost its operational performance.

Kazakhmys said in a statement the agreement would allow ENRC about $887 million in cash, with more than 77 million Kazakhmys shares to “substantially strengthen the group’s financial position”.

The three ENRC co-founders and the Kazakh state already own almost 54% of ENRC and say that the transaction would allow “greater focus on operational performance, and would be beneficial for the government, given that ENRC employs 66,700 people locally and provides key infrastructure.”

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