Diversified mining giant Eurasian Natural Resources Corp (ENRC) has completed the acquisition of thermal coal group Shubarkol Komir JSC, which is expected to enhance the company's position as a leading coal producer in Kazakhstan.
ENRC has today completed the open trade on the Kazakhstan Stock Exchange to acquire the outstanding 75% of common shares in Shubarkol for $600m, after having proposed the exercise of an option back in October 2011. When the group first proposed the acquisition, it said it would also take on $50m of assumed debt.
"I am very pleased that we have concluded this strategic transaction, which has been supported by the overwhelming majority of ENRC's shareholders," said Chief Executive Officer Felix J Vulis.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The acquisition of this high-quality thermal coal asset favourably positions us to meet the growing energy needs of our businesses in Kazakhstan and enhances our integrated, low-cost position," he said.
Shubarkol produced 6.0m tonnes of coal in 2010, equal to 5.4% of Kazakhstan's total coal production. It generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $85.3m.
BC
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the USMedium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.
