Kazakhstan’s Government has adopted a resolution “On some issues of developing the Kazakhstan’s mining sector”, in accordance with which the Government will purchase a stake in Kazakhmys PLC
Kazakhstan’s Government has adopted a resolution # 554 “On some issues of developing the Kazakhstan’s mining sector” as of June 10, 2008, in accordance with which the Government will purchase a stake in Kazakhmys PLC.
The purchase of the stake in Kazakhmys PLC will be effected through exchange of shares: the Government will transfer to Kazakhmys PLC a part of the state’s stake in Eurasian Natural Resources Corporation (ENRC PLC) in return for an additional issue of Kazakhmys PLC shares.
Thus, the state will be a major shareholder in both largest Kazakhstan-based mining companies listed on the LSE. Due to this deal, the Government will strengthen its influence in the mining sector of Kazakhstan, will diversify its investments portfolio and reduce dependence on fluctuations of the global prices for individual metals and metallurgy products.
The two companies had successfully run IPOs on the LSE which enabled not only to substantially increase the value of the companies’ assets but also to attract attention of the international community to the investment potential of Kazakhstan.
According to the Government’s resolution, the number of shares subject to exchange will be defined based on the average ENRC PLC and Kazakhmys PLC shares price - for the month preceding the date of signing - calculated from closing prices on the LSE.
As a result of the deal, the Government will retain 11,65% of ENRC PLC shares and will acquire 15% of shares in Kazakhmys PLC.
Kazakhstan’s Prime Minister Press Service
Documents
- National Laws and Decrees of the Kazakhstan President
- Government Regulations and Prime Minister Instructions
- Government Programs
- Public speeches of the Prime Minister and members of the Government
