KAZ Minerals Recommends A $5.65B Buyout Offer To Shareholders


KAZ Minerals has recommended a $5.65 billion buyout offer from Nova Resources, the latest in a series of increased bids from Nova. The deal would be an all cash transaction should shareholders approve the deal.


Nova Resources has said it believes the strategy KAZ Minerals is currently attempting to implement is both capital intensive and risky. This is mostly due to the Baimskaya project, which is a large copper and gold project which KAZ is currently working on in Russia. It thinks that due to the nature of the project, the minerals project would be better served as private.


Nova Resources is owned by Oleg Novachuk (the current chairman of KAZ Minerals) and Vladimir Kim (a non-executive director of KAZ Minerals), so the company is uniquely suited to understand the challenges faced by KAZ.


However, investors have held out until this point, believing that the offer is too low, and the waiting appears to have paid off.