Increased cash offer for Kaz Minerals accepted by committee

By Dominic Ellis
Increased offer price values the entire issued and to be issued share capital of KAZ Minerals at approximately £3.7 billion...

An increased offer of 780p-a-share for Kaz Minerals has been "unanimously recommended" by the company's Independent Committee.

It marks a 140p increase on October's offer, and reflects a 14 percent spike in copper prices. Bidco made the original £3 billion cash offer at the end of October (click here). Kaz Minerals is currently trading at 797.20p.

The new offer values the entire issued and to be issued share capital of KAZ Minerals at approximately £3.7 billion, and represents a premium of approximately:

  • 22% to the Original Offer price of 640 pence in cash for each KAZ Minerals Share;
  • 52% to the Closing Price of 512.4 pence per KAZ Minerals Share on 2 October 2020 (being the last Business Day prior to agreement in respect of the Original Offer having been reached with the Independent Committee);
  • 37% to the Closing Price of 570.8 pence per KAZ Minerals Share on 27 October 2020 (being the last Business Day prior to the date of the 2.7 Announcement);
  • 42% to the volume-weighted average price of 549.2 pence per KAZ Minerals Share for the one-month period ended 27 October 2020 (being the last Business Day prior to the date of the 2.7 Announcement); and
  • 54% to the volume-weighted average price of 505.8 pence per KAZ Minerals Share for the six-month period ended 27 October 2020.

Oleg Novachuk, Chairman of Bidco, said: "KAZ Minerals must now focus on the execution of a higher risk, capital intensive strategy to deliver the Baimskaya project. Accordingly, we believe that KAZ Minerals' long term interests are now best served as a private organisation."  

The Baimskaya project is expected to start production by the end of 2027 and have an annual ore processing capacity of 70 Mtpa. 

Kaz Minerals' full year copper production totalled 305.7 kt (FY 2019: 311.4 kt), 2% above guidance range with strong performance across all divisions (click here). 

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