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.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

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.

Advertisement
Advertisement - Article continues below

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

Advertisement

Recommended

Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020
Visit/investments/stocks-and-shares/share-tips/600636/class-acts-going-cheap-buy-into-europes-best
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020

Most Popular

Visit/investments/property/601065/what-does-the-coronavirus-crisis-mean-for-uk-house-prices
Property

What does the coronavirus crisis mean for UK house prices?

With the whole country in lockdown, the UK property market is closed for business. John Stepek looks at what that means for UK house prices, housebuil…
27 Mar 2020
Visit/personal-finance/mortgages/601045/coronavirus-what-it-means-for-your-mortgage-or-your-rent
Mortgages

Coronavirus: what it means for your mortgage or your rent

Ruth Jackson-Kirby looks at all the key questions for owners, renters and landlords affected by the coronavirus crisis.
29 Mar 2020
Visit/economy/small-business/601073/furlough-what-does-it-mean-and-how-does-it-affect-me
Small business

Furlough: what does it mean and how does it affect me?

Many companies have “furloughed” employees after they have shut down because of the coronavirus. But what does furlough mean and how does the scheme w…
30 Mar 2020
Visit/investments/stockmarkets/601068/buy-stocks-for-the-long-term-but-buy-very-carefully
Stockmarkets

Buy stocks for the long term, but buy very carefully

After the wild ride of the last couple of weeks, equities are no longer expensive. But if you do decide to buy, be very, very careful indeed, says Mer…
30 Mar 2020