ENRC rebuffs proposal from founding shareholders

An approach by a group of ENRC's founding shareholders regarding a possible takeover is not high enough, according to the mining company which has allowed the consortium more time to revise up its proposal.

An approach by a group of ENRC's founding shareholders regarding a possible takeover is not high enough, according to the mining company which has allowed the consortium more time to revise up its proposal.

Major shareholder Alexander Machkevitch and fellow oligarchs Patokh Chodiev and Alijan Ibragimov announced last month that they were interested in taking over the company along with the government of Kazakhstan, who collectively own 54% of the firm.

ENRC, which is also 26%-owned by fellow miner Kazakhmys, has now said that it received an indicative proposal from the consortium this week which "materially undervalues" the firm.

While ENRC has not specified a price, Bloomberg reported that the founding shareholders are looking at an offer price of less than 300p per share, according to people close to the matter.

The stock was down 6.87% to 275p in afternoon trade from Thursday's close of 295.3p.

ENRC has now given the consortium until June 3rd to either announce a firm intention to make an offer or walk away.

"We believe the current proposal materially undervalues ENRC, and we will use the extension to seek an improved and formal proposal," said Mohsen Khalil, the Chairman of the independent committee of the ENRC board.

"The independent committee is committed to serving the best interests of minority shareholders through a professional, transparent and rigorous process, which incorporates the highest standards and principles of independence and integrity."

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
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
Do you own shares in Sirius Minerals? Here’s what you need to do now
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

Most Popular

Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
It's not just the UK – we're seeing pandemic housing booms across the globe
Property

It's not just the UK – we're seeing pandemic housing booms across the globe

Soaring house prices aren’t just a UK thing, they’re a worldwide phenomenon. And it’s no coincidence – the underlying cause is much the same. John Ste…
18 Jan 2021