|Bid||633.20 x 0|
|Ask||633.40 x 0|
|Day's Range||632.00 - 641.00|
|52 Week Range||256.20 - 651.00|
|Beta (5Y Monthly)||1.32|
|PE Ratio (TTM)||5.76|
|Earnings Date||Feb 18, 2021|
|Forward Dividend & Yield||0.06 (0.96%)|
|Ex-Dividend Date||Oct 01, 2020|
|1y Target Est||8.03|
KAZ Minerals' fifth biggest investor says it plans to vote against a 3 billion pound ($3.94 billion) take-private plan orchestrated by the company's chairman, Oleg Novachuk, because it undervalues it. A consortium, led by Novachuk and KAZ director Vladimir Kim, last month offered 640 pence for the 61% of the mining company's shares it doesn't already own to take it private. The all-cash deal would offer minority shareholders a 12% premium on the previous day's close.
(Bloomberg) -- KAZ Minerals Plc looks set to end its 15-year London listing after the Kazakh copper miner’s biggest shareholder offered to take it private. The reason: irreconcilable differences with the market.It’s not the first to reach that conclusion.During the commodity super cycle at the start of the century, London became the default market for many of the world’s closely held mining assets, especially those in the former Soviet sphere of influence that were privatized after the end of the Cold War. Institutional money poured into the stocks at a time when commodities like copper and zinc were trading at records.But as metals prices cooled in recent years, so did investors’ interest. A growing scrutiny on corporate, environmental, social and governance issues has made shareholders more cautious of emerging-market-focused companies, and miners face renewed pressure to produce returns rather than just chasing production growth.The move to take KAZ private echoes earlier deals at Vedanta Resources Plc and another Kazakh company, Eurasian Natural Resources Corp., which both listed during the 2000s commodity boom. While they’ve all left the exchange for different reasons, London investors ultimately no longer valued the companies as highly as their biggest owners did.‘Risk-Reward’“The increasing ESG scrutiny from investors hasn’t helped developing market resource companies,” said Grant Sporre, a Bloomberg Intelligence analyst. “Many investors now see the risk-reward balance skewed to the downside, and in a sense it reflects the de-globalization sentiment at the moment.”In 2008, Vedanta, ENRC and KAZ had a combined market value approaching 40 billion pounds ($52 billion) -- that’s nearly the same as Glencore Plc and Anglo American Plc combined today. They offered exposure to both emerging markets and materials that were forecast to be in short supply for years to come. Yet they also came with complicated ownership structures and operated in countries viewed as riskier for investment.ENRC was the first to go -- its owners took the company private in 2013 after the U.K. Serious Fraud Office opened a formal investigation into allegations that it paid bribes to win business in Kazakhstan and Africa. ENRC, which is still under investigation, has denied wrongdoing.In 2018, billionaire Anil Agarwal bought out minority investors in Vedanta Resources Plc as he looked to simplify the structure of the resources group that he wants to transform into one of the world’s largest. The company’s complex ownership structure, high debt and governance issues had been a concern for investors.Finally, KAZ announced Wednesday that its biggest shareholder and chairman agreed to take the copper producer private in a $2.4 billion deal backed by the board. Other investors had objected to its ambitious growth plans after the company bought a project that could cost about $7 billion to build, potentially sucking up the miner’s profits for years.London still remains one of the world’s leading financial centers for resource companies, including diversified giants BHP Group and Rio Tinto Group. However, a successful takeover of KAZ would leave Antofagasta Plc as the only major copper-focused miner on the London Stock Exchange.“This should therefore be a modest net positive for Anto,” Jefferies analyst Chris LaFemina said. “It opens the door for another copper miner that may wish to list in London.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Even the best stock pickers can get their calls wrong.Liberum Capital Ltd. analyst Ben Davis is probably wishing he hadn’t pressed send on his Oct. 27 report downgrading KAZ Minerals Plc. He cut the copper miner to “hold” and lowered its target price to 470 pence -- indicating 19% downside from its last close.Then Wednesday morning, the London-listed company’s biggest holder announced a 1.8 billion-pound ($2.4 billion) deal to take the company private, offering minority investors 640 pence per share. KAZ Minerals surged 9.7% as of 10:38 a.m., adding 262 million pounds of market value and putting it on track to close at the highest level since May 2019.Refinitiv rated Davis as the No. 1 metals and mining stock picker in the U.K. and Ireland in its StarMine Analyst Awards last year, and he came in at a respectable No. 2 in this year’s rankings. When reached by phone after the deal announcement, he chalked the timing up to “terribly bad luck.”Davis said he had concerns about the stock because of the investment needed for its $7 billion Baimskaya project in Russia. In his report this week, Davis wrote it’s “improbable” that KAZ Minerals will find a partner to help it develop the deposit, meaning the company is unlikely to see free cash flow until 2030.Now it looks like investors will get a payday much sooner.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.