Consortium makes final £4.1 billion offer to take Kaz Minerals private

The management consortium Nova Resources has made a final offer of £4.1 billion to acquire London-listed Kaz Minerals, in a deal that would take the copper mining giant private.

Nova Resources, which is controlled by Kaz chair Oleg Novachuk and billionaire metals tycoon Vladimir Kim, said it would pay 850p a share for the 61% of the company it does not already own.

The investment vehicle first approached Kaz with a 640p per share offer in October and followed up with an increased 780p a share bid in February. The final offer will also entitle shareholders to a special dividend – paid in US dollars – of 27 cents a share, giving the final offer an aggregate value of 869p, or £4.1 billion.

To delist the Kazakh-focused copper producer, Nova needs to win approval from 75% of shareholders. It already has acceptances from close to 60% of shareholders, with the offer to remain open until April 9.

Following the improved bid, Novachuk said Nova has listened to ‘market constituents’ and the final offer fully reflected the change in ‘copper market dynamics’ since its original bid. “We remain convinced that the final increased offer represents a highly attractive return for Kaz Minerals shareholders,” he said.

Since Nova’s first bid in October, the copper price has risen to a 10-year high of almost US$9,500 per tonne, based on supply constraints and rising demand projections to feed the ‘green infrastructural revolution’.

Kaz Minerals is developing the Baimskaya project, a huge ore body in a remote part of Russia which is regarded by some investors as one of the mining industry’s most exciting under-developed copper prospects.