Nova Resources (Bidco) has placed a final increased takeover offer to UK-based copper mining company Kaz Minerals of around £4.1bn ($5.65bn) in cash.
Currently holding a 59.28% stake in KAZ Minerals, Nova Resources is a consortium comprising KAZ chairman Oleg Novachuk and KAZ director Vladimir Kim.
Under the new terms, Nova Resources will offer Kaz Minerals shareholders 850p in cash for each share held in the company to acquire the remaining stake in Kaz Minerals.
Nova Resources said that the offer’s financial terms are final and will not be increased.
Novachuk said: “However, KAZ Minerals must now focus on the execution of a higher risk, capital intensive strategy to deliver the Baimskaya project, the associated implementation risks of which are substantial. In this context, KAZ Minerals’ long-term interests are best served as a private organisation.”
Last October, Kaz Minerals received an offer from Nova Resources for a price of 640p for each of the Kaz Minerals’ shares it did not own previously.
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Last month, the offer to Kaz Minerals was mitigated by Nova Resources to 780p a share.
Kaz Minerals independent committee chair Michael Lynch-Bell said: “The Independent Committee unanimously recommends that KAZ Minerals shareholders accept this final increased offer as we believe it reflects the long-term fair value of KAZ Minerals and strikes a fair balance between the strength of KAZ Minerals’ operating assets and development portfolio and the increased risk profile of the Baimskaya project.”
KAZ Minerals operates the Aktogay and Bozshakol open-pit copper mines in the respective East and Pavlodar regions of Kazakhstan.
It also operates three underground mines and associated concentrators in the East Region of Kazakhstan and the Bozymchak copper-gold mine in Kyrgyzstan.
In 2019, the firm acquired the Baimskaya project in Russia’s Chukotka region. The project is said to be one of the world’s most significant undeveloped copper assets.