ENRC brokers quit as bid deadline looms

Embattled miner Eurasian Natural Resources Corporation was further hit by bad news after two its brokers, Deutsche Bank and Morgan Stanley, resigned from their roles.

Embattled miner Eurasian Natural Resources Corporation was further hit by bad news after two its brokers, Deutsche Bank and Morgan Stanley, resigned from their roles.

The news comes two weeks after the Serious Fraud Office launched a criminal investigation into the Kazakhstan- and Africa-focused company.

The board are interviewing potential replacement brokers, with sources suggesting Credit Suisse will join Lazard as an adviser to the independent committee of directors at the company.

On Thursday morning the company reported first quarter results that were knocked back by weaker commodity prices and severe winter weather, and admitted it had yet to hear further details of the potential offer from major shareholder Alexander Machkevitch.

Russian billionaire Suleiman Kerimov bought a 2.86% stake in the group earlier in the week, taking his share in the company to 3.05%.

But this is dwarfed by the combined 43.8% held by Machkevitch and fellow oligarchs Patokh Chodiev and Alijan Ibragimov, who are considering a joint offer alongside the Kazakh government. FTSE 250 miner Kazakhmys also owns 26%.

On April 19th Machkevitch said he and his associates were 'reviewing a number of potential opportunities which include the possibility of making an offer for ENRC' and was given a deadline by the takeover panel of May 17th to make a bid.

Since that time, the Serious Fraud Office has confirmed that it is focusing on "allegations of fraud, bribery and corruption relating to the activities of the company or its subsidiaries in Kazakhstan and Africa".

Shares in ENRC were down 3.9% at 291.5p at 14:52 on Thursday.

OH

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021