Polyus concludes offer for KazakhGold shares; appoints new KazakhGold head

mineral resources

Polyus concludes offer for KazakhGold shares; appoints new KazakhGold head

By SRI ⋅ August 18, 2009 ⋅

(SRI) - Russian gold miner Polyus Gold has concluded its partial offer to acquire 50.1 percent of shares in Kazakhstan-focused KazakhGold for $269 million in cash and 0.064 of Polyus shares for each KazakhGold share.

The Russian company’s offer reportedly resulted in acceptances representing 96.4 percent of KazakhGold shares. The acceptances have included KazakhGold’s controlling shareholder, the Assaubayev family, who holds a 41.8-percent stake in the miner.

“As the number of share representing formal acceptances of the offer has exceeded the 50.1-percent partial offer, excess acceptances will be scaled down proportionally,” Poluys said in a statement cited by RIA Novosti. The deal should be formally concluded on August 27.

Meanwhile, Polyus’ CEO Yevgeniy Ivanov was named the new chairman and chief executive of KazakhGold, and three other Polyus executives will become members of the seven-member KazakhGold board.

Polyus first expressed interest in acquiring a majority stake in KazakhGold in September 2008. In June of this year, the two companies reached a deal in which Polyus agreed to pay $7.18 and 0.064 of Polyus share in exchange for each KazakhGold share.

KazakhGold’s main assets are gold mines Aksu, Bestobe and Zholybmet. In addition, the company holds eight exploration licenses in Eastern Kazakhstan and assets in Kyrgyzstan and Romania.