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Kazakhmys PLC (KAZ)

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Friday 09 May, 2008

Kazakhmys PLC

Offer Rejection

Kazakhmys PLC
09 May 2008



                                                                      9 May 2008


              KAZAKHMYS PLC REJECTS NON-BINDING PROPOSAL FROM ENRC



Kazakhmys confirms that it received last night an indicative and non-binding
proposal in the form of a letter from ENRC.


The non-binding indicative proposal


Under the terms of this proposal from ENRC, Kazakhmys shareholders would receive
for each share held:

- 1,022 pence in cash, and
- a dividend in specie of 0.413 ENRC shares representing Kazakhmys' current
  holding in ENRC.

The proposal values each Kazakhmys share at approximately 1,550 pence, which is
well below the current share price.

Response from the Kazakhmys Board of Directors


The Board of Kazakhmys has considered and unanimously rejected the proposal from
ENRC.


For further information please contact:


---------------  ------------------------              ------------------
Kazakhmys PLC
John Smelt       Head of Corporate Communications      Tel: +44 20 7901 7882
                                                       Tel: +44 78 7964 2675
Olga Nekrassova  Financial Analyst                     Tel: +44 20 7901 7814
---------------  ------------------------              ------------------
Merlin
David Simonson                                         Tel: +44 20 7653 6620
Tom Randell                                            Tel: +44 20 7653 6620
Leonid Fink                                            Tel: +44 20 7653 6620
---------------  ------------------------              ------------------



- ends -

This announcement is being made without the agreement or approval of ENRC. A
further announcement will be made as and when appropriate. There can be no
certainty that any offer will be made nor as to the terms on which any offer may
be made.



DEALING DISCLOSURE REQUIREMENTS


Under the provisions of Rule 8.3 of the Takeover Code (the 'Code'), if any
person is, or becomes, 'interested' (directly or indirectly) in 1% or more of
any class of 'relevant securities' of ENRC or of Kazakhmys, all 'dealings' in
any 'relevant securities' of that company (including by means of an option in
respect of, or a derivative referenced to, any such 'relevant securities') must
be publicly disclosed by no later than 3.30 pm (London time) on the London
business day following the date of the relevant transaction. This requirement
will continue until the date on which the offer becomes, or is declared,
unconditional as to acceptances, lapses or is otherwise withdrawn or on which
the 'offer period' otherwise ends. If two or more persons act together pursuant
to an agreement or understanding, whether formal or informal, to acquire an
'interest' in 'relevant securities' of ENRC or of Kazakhmys, they will be deemed
to be a single person for the purpose of Rule 8.3.


Under the provisions of Rule 8.1 of the Code, all 'dealings' in 'relevant
securities' of ENRC or of Kazakhmys by ENRC or Kazakhmys, or by any of their
respective 'associates', must be disclosed by no later than 12.00 noon (London
time) on the London business day following the date of the relevant transaction.


A disclosure table, giving details of the companies in whose 'relevant
securities' 'dealings' should be disclosed, and the number of such securities in
issue, can be found on the Takeover Panel's website at
www.thetakeoverpanel.org.uk.


'Interests in securities' arise, in summary, when a person has long economic
exposure, whether conditional or absolute, to changes in the price of
securities. In particular, a person will be treated as having an 'interest' by
virtue of the ownership or control of securities, or by virtue of any option in
respect of, or derivative referenced to, securities.


Terms in quotation marks are defined in the Code, which can also be found on the
Panel's website. If you are in any doubt as to whether or not you are required
to disclose a 'dealing' under Rule 8, you should consult the Panel.


Notes to Editors


Kazakhmys PLC is the largest copper producer in Kazakhstan and one of the
leading copper producers in the world. Kazakhmys is a fully integrated copper
producer from mining ore through to the production of finished copper cathode
and rod. The Group produces significant volumes of other metals as by-products,
including zinc, silver and gold. Existing operations include 20 open pit and
underground mines, 10 concentrators, two copper smelting and refining complexes,
a copper rod plant, a zinc plant and a precious metals refinery. Production is
backed by a captive power supply and significant rail infrastructure. Kazakhmys
also owns MKM, a copper products fabrication company in Germany, and has Gold
and Petroleum Divisions with assets in Kazakhstan and other parts of Central
Asia. The Group's strategic aim is to diversify and participate in the
development of the significant natural resource opportunities in Central Asia.






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