The consortium bidding to take KAZ Minerals private said on Monday its bid for the copper miner had been declared unconditional after winning more than 90% of support.
Nova Resources, led by KAZ Minerals Chairman Oleg Novachuk and Kazakh billionaire Vladimir Kim, at the end of March had offered shareholders 850 pence ($1.18) in cash per share for the 60% they do not already own after minority investors rejected two previous offers for being too low.
KAZ Minerals bought the Baimskaya copper mine in eastern Russia in 2018 from a group of investors including Chelsea soccer club owner Roman Abramovich.
The company’s stock dived after announcing the acquisition, hit by investor concern over Russian political risk, even though the mine is regarded as one of the world’s most significant underdeveloped copper prospects.
Costs of developing the mine are estimated at almost $8 billion and Nova noted on Friday that among the project’s risks there are potential cost blowouts, increased working capital requirements and liabilities related to long-term logistics contracts.
“In this context, Kaz Minerals’ long-term interests are best served as a private organisation,” Novachuk said.
($1 = 0.7191 pounds)
(With files from Reuters)