Kazakhmys says it will have new controlling shareholder

Kazakh copper producer Kazakhmys said on Wednesday it had signed a framework agreement that would transfer control of the company to a new shareholder.

“The signing of the document is the starting point for the transfer of control. In the near future, all necessary measures and obligations under the agreement will be carried out in accordance with established procedures, followed by the signing of a share purchase agreement,” the company said in a statement.

The agreement was inked by Kazakhmys’ president, Vladimir Kim, and its board chair Eduard Ogay.

Kazakhmys did not say who would take control. Local media named construction company Qazaq Stroy, founded and majority-owned by Nurlan Artykbayev, as the new shareholder of Kazakhmys. The preliminary transaction amount was $3.85 billion, local media reported.

Kazakhmys declined to name the new owner when asked by Reuters and referred journalists to its published statement. Qazaq Stroy did not immediately respond to a comment request.

Kazakhmys ranks 20th in the world in terms of copper concentrate production, producing 271,000 tonnes annually, and 12th in terms of crude and cathode copper production, producing 377,000 tonnes and 365,000 tonnes respectively, taking into account tolling raw materials.

In its statement, Kazakhmys said the change of shareholder would not affect its production or contractual obligations.

(By Mariya Gordeyeva and Lucy Papachristou; Editing by Mark Trevelyan)