/KASE, December 10, 09/ - KAZAKHMYS PLC (London), listing on the
Kazakhstan Stock Exchange (KASE), provided KASE with a press-release:
Quotation begins
Kazakhmys PLC ("Kazakhmys" or the "Group") announces that, further to the
announcement made on 13 October 2009, the stake to be sold in its Ekibastuz
GRES -1 ("Ekibastuz") power plant, to the National Welfare Fund Samruk-Kazyna
JSC ("Samruk-Kazyna"), will increase from 25% to 50% (the "Transaction"). The
consideration will increase from $339 million to $681 million.
On 13 October 2009, Kazakhmys announced the sale of 25% of Ekibastuz to
Samruk-Kazyna. Following further negotiations, the size of the stake to be sold
has been increased to 50%. This transaction is in keeping with the original
memorandum signed and announced in October 2008, to develop a strategic
partnership at Ekibastuz with Samruk-Kazyna.
The consideration of $681 million will be payable in cash and will primarily be
used by Kazakhmys to repay debt. The transaction is subject to certain
regulatory consents and approvals. As Samruk-Kazyna is owned by the Government
of Kazakhstan, which is a significant shareholder in Kazakhmys, this is
a related party transaction and is therefore subject to the approval of
shareholders of Kazakhmys. A Circular providing additional detail on
the Transaction will be sent to shareholders by the end of December ahead of
a General Meeting to be held in January to approve the Transaction. As part of
the negotiations with Samruk-Kazyna, it was agreed that Kazakhmys would receive
the proceeds from the Transaction by the year end, in advance of completion.
Transfer of title, however, will not happen until all regulatory consents
and approvals have been obtained.
Kazakhmys and Samruk-Kazyna will create a joint supervisory board following the
Transaction. Management positions will alternate between Kazakhmys and
Samruk-Kazyna every five years. In the first five years following
the transaction, Kazakhmys will appoint the management team whilst Samruk-Kazyna
will appoint several key oversight positions. As stated in October 2009,
the Board believes that partnership with Samruk-Kazyna will enhance the value
of Ekibastuz by providing a closer relationship with the Bogatyr mine (jointly
owned by Samruk-Energy JSC and UC Rusal) which supplies approximately 80% of
Ekibastuz's coal requirements. The strategic partnership is also expected to
further support the upgrading of the Ekibastuz power station, while providing
greater integration with Kazakhstan's generation and transmission programmes.
The full year EBITDA and profit before tax attributable to Ekibastuz, as derived
from its IFRS audited financial statements, was $86.7 million and $35.3 million,
respectively, for the year ended 31 December 2008. As at 30 June 2009, Ekibastuz
had gross assets of $1,535 million. The Transaction implies a gross valuation
for the Ekibastuz power plant of $1,362 million.
For details, contact:
Kazakhmys PLC
John Smelt Corporate Relations
Tel: +44 20 7901 7882
Tel: +44 78 7964 2675
Ayrin Barton Financial Analyst
Tel: +44 20 7901 7814
Zulfira Mukhamediarova Media Relations
Tel: +77 27 266 3317
Merlin
David Simonson Tel: +44 20 7726 8400
Tom Randell Tel: +44 20 7726 8400
Leonid Fink Tel: +44 20 7726 8400
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The full version of the press release is available at the KASE website at
http://www.kase.kz/files/emitters/GB_KZMS/gbkzms_reliz_101209.pdf
[2009-12-10]