Miner Kaz agrees to 3 bln pound buyout deal from chairman-led group

Kaz Minerals said on Wednesday it has agreed to be acquired by a consortium led by its chairman, Oleg Novachuk, in an all-cash deal that values the London-listed miner at 3 billion pounds ($3.91 billion).

Adds details from statement

Oct 28 (Reuters) - Kaz Minerals KAZ.L said on Wednesday it has agreed to be acquired by a consortium led by its chairman, Oleg Novachuk, in an all-cash deal that values the London-listed miner at 3 billion pounds ($3.91 billion).

Nova Resources, a company owned by Novachuk and Kaz director Vladimir Kim, will pay 640 pence per Kaz share, the miner said.

Kaz shares scaled their highest in one and a half years in early trade. They were up 10% at 629 pence by 0811 GMT.

Novachuk and Kim already own stakes of 7.8% and 31.6% in Kaz, respectively, according to Refinitiv data.

The consortium believes Kaz's long term interests are best served as a private company, the miner said.

Kaz Minerals, the largest copper producer in Kazakhstan, said an independent committee considered the terms of the deal to be "fair and reasonable".

Like miners across the globe, Kaz earlier this year cut its 2020 capital spend and warned of production delays as it dealt with disruptions due to the coronavirus crisis.

($1 = 0.7673 pounds)

(Reporting by Muvija M in Bengaluru; Editing by Aditya Soni)

((Muvija.M@thomsonreuters.com; within UK: +44 20 7542 1810, outside UK: +91 80 61822698; Twitter: https://twitter.com/muvija_m;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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