Company KAZAKHMYS PLC (United Kingdom) announced acquisition of 7.7% stake in EURASIAN NATURAL RESOURCES CORPORATION PLC (ENRC) from the Government of Kazakhstan

10.06.08 17:34
/KASE, June 10, 08/ - Company KAZAKHMYS PLC (London), common shares of which are traded in the Kazakhstan Stock Exchange (KASE) category "A" official list, provided to KASE the press release, which informs of the following: Quotation start The Board of Kazakhmys is pleased to announce the signing of an agreement to acquire a further 7.66% stake in Eurasian Natural Resources Corporation PLC from the Government of Kazakhstan as follows: - Kazakhmys is to acquire 98,607,884 shares in ENRC from the Government of Kazakhstan - Acquisition will take the total holding of Kazakhmys in ENRC from 14.59% to 22.24% - Acquisition is subject to regulatory approvals and approval by the shareholders of Kazakhmys - Kazakhmys is to issue 80,286,050 new shares to the Government of Kazakhstan in return to ENRC PLC blosk of shares - The Government of Kazakhstan will become a holder of 15.0% of the enlarged share capital of Kazakhmys - Agreed exchange ratio of 1 Kazakhmys shares for 1.23 ENRC shares - Following completion of the Acquisition, Kazakhmys will have acquired its stake in ENRC at an average price of 623 pence per ENRC share - Issue of new equity maintains the flexibility and strength of Kazakhmys' balance sheet - The Acquisition will make Kazakhmys the largest single shareholder in ENRC - The Board of Kazakhmys believes this acquisition will significantly enhance the strategic value of its holding in ENRC - Continues Kazakhmys' strategy of diversifying through acquiring interests in natural resource businesses in Central Asia - The Board of Kazakhmys has no intention of making a full offer for ENRC shares at the current time Commenting on the Acquisition, Vladimir Kim, Chairman of Kazakhmys said "We are delighted to announce the proposed acquisition of additional shares in ENRC, which will enhance the value of our current holding. This is a continuation of our strategy of diversifying our portfolio by acquiring other natural resource assets in Kazakhstan and the Central Asian region. I welcome the participation of the Government of Kazakhstan as a minority shareholder in Kazakhmys". For more detailed information, please call to the following contact telephones: Kazakhmys PLC John Smelt, Head of Corporate Communications Tel.: +44 20 7901 7882 Olga Nekrassova,Financial Analyst Tel.: +44 20 7901 7814 "Merlin" David Simonson and Tom Pandell Tel.: +44 20 7653 6620 Leonid Fink Tel.: +44 20 7653 6620 Quotation end The full version of KAZAKHMYS PLC press release is available on KASE site at: - http://www.kase.kz/emitters/scan/kzms/gbkzms_reliz_100608.pdf - in Russian; - http://www.kase.kz/emitters/scan/kzms/gbkzms_reliz_100608e.pdf - in English. [2008-06-10]