Kazakhstan's Samruk Buys Verny Capital's Stake in Kazzinc -Source
02/07/2013| 03:49pm US/Eastern
By Alex MacDonald
CAPE TOWN--Kazakhstan's sovereign wealth fund, Samruk-Kazyna JSC, acquired a 30% stake in Kazzinc, the Kazakhstan integrated zinc, copper and lead producer, from Verny Capital JSC, a person familiar with the matter said Thursday.
Commodities company Glencore International PLC (>> Glencore International Plc) owns a 69.61% stake in Kazzinc, while the remainder is owned by Verny and a small number of shareholders.
Kazzinc has an annual production capacity of 300,000 metric tons of zinc metal, 130,000 tons of lead metal and 240,000 tons of copper concentrate. Kazzinc also has a production capacity of 1.5 million troy ounces of gold and 45 million ounces of silver.
Glencore had in 2011 sought to increase its stake in the company to 93% from 50.7% in a deal valued at $3.2 billion. It agreed instead to increase its stake by 18.91% to its current stake for no more than $1.395 billion in shares and cash.
Verny is Kazakhstan's largest private-equity group and is owned by Kazakh billionaire Bulat Utemuratov. The move coincides with confirmation from three people familiar with the matter that Samruk is holding talks with Kazakhmys PLC (>> Kazakhmys plc) to buy the remaining 50% stake it doesn't already own in Kazakhstan's largest power plant from the copper producer.
Credit Suisse estimated the stake to be worth between $1.5 billion to $1.7 billion.
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