KAZAKHMYS PLC (United Kingdom) to sell a 25 % share in Ekibastuz GRES-1 to National wellbeing fund Samruk-Kazyna
13.10.09 15:34
/KASE, October 13, 09/ - KAZAKHMYS PLC (London), common shares
of which are listed on Kazakhstan Stock Exchange (KASE), provided KASE
with a press release:
Quotation begins
Kazakhmys PLC ("Kazakhmys" or the "Group") announces the sale of a 25%
stake in its Ekibastuz GRES -1 ("Ekibastuz") power plant to the National Welfare
Fund Samruk-Kazyna JSC ("Samruk-Kazyna") for a consideration of $339 million
in cash. The transaction implies a gross valuation for the Ekibastuz power plant
of $1,356 million.
Ekibastuz is the largest power plant in Kazakhstan and has the potential to
significantly increase capacity over the next 5 years, from the current
available capacity of 2,250 MW back to the plant's original nameplate capacity
of 4,000 MW. In a market increasingly short of power supply, Ekibastuz is key
to meeting Kazakhstan's future power needs.
The value of the transaction was determined by reference to the price paid by
Kazakhmys when it acquired the Ekibastuz plant in May 2008, plus subsequent
investments in the business by Kazakhmys. The transaction follows a
memorandum of understanding, signed in October 2008, between Kazakhmys
and Samruk-Energy JSC, a subsidiary of Samruk-Kazyna, to consider a
partnership at Ekibastuz. The transaction is subject to regulatory consents and
approvals and completion is expected by the end of 2009. Kazakhmys will retain
management control of Ekibastuz following the transaction.
Oleg Novachuk, Chief Executive of Kazakhmys, said:"Samruk-Kazyna is an
excellent partner for us in Ekibastuz and we are pleased to be formalising the
relationship. Ekibastuz is a key strategic asset in Kazakhstan and this
agreement will assist its long term development and return to full capacity."
The Government of Kazakhstan owns Samruk-Kazyna and is, indirectly,
a significant shareholder in Kazakhmys, with representation on the board of
directors. The proposed transaction constitutes a 'smaller related party
transaction' for the purposes of the Listing Rules of the United Kingdom Listing
Authority.
For further information please contact:
Kazakhmys PLC
John Smelt Corporate Relations Tel: +44 20 7901 7882
Ayrin Barton Financial Analyst Tel: +44 20 7901 7814
Zulfira Mukhamediarova Media Relations Tel: +72 72 663 317
Merlin
David Simonson Tel: +44 20 7653 6620
Tom Randell Tel: +44 20 7653 6620
Leonid Fink Tel: +44 20 7653 6620
Ends
[2009-10-13]