Kazakhmys dismisses reverse takeover talk
Copper mining giant Kazakhmys, which is in talks with fellow Russian miner Metalloinvest, has denied a deal would involve a reverse takeover.
A reverse takeover would have involved privately owned Metalloinvest acquiring the FTSE 100 Kazakh miner and keeping the list on London’s benchmark index of leading shares.
But yesterday Kazakhmys rejected this. One of the options being explored now by lawyers and bankers would see the newly formed company keeping the Kazakhmys listing with both firms injecting their assets into a holding company.
“Further to the announcement yesterday regarding speculation related to a potential combination, Kazakhmys confirms that it is not currently contemplating the implementation of such a combination through a structure that would be classified as a reverse takeover under the rules of the UK Listing Authority,” the firm said in a statement yesterday.
A tie-up between the two groups would create one of the five largest mining companies in the world – behind BHP Billiton, Rio Tinto and Anglo America – with a market value of $40bn (£20bn). The potential merger would also allow the copper miner to launch a bid for ENRC (Eurasian Natural Resources Company), a major iron-ore producer in Kazakhstan, of which Kazakhmys, already owns a 22 per cent stake.
Metalloinvest, Russia’s biggest ironore producer, is half owned by billionaire Russian businessman Alisher Usmanov, who also has a stake in Arsenal Football Club.
Until recently, the firm was mulling an initial public offering (IPO) in London and Moscow but now buying a listed firm in Britain has become a more attractive option to the Russians because of fears of an economic downturn.
Analysts have said there is good strategic logic in the deal.
