Copper miner Kazakhmys takes $823m hit on sale of ENRC stake
The copper miner Kazakhmys today took an $823 million (£527 million) hit on its 26 per cent stake in ENRC, the scandal-scarred miner poised to be taken private after five turbulent years on the London Stock Exchange.
The blow plunged Kazakhmys into the red with a half-year loss of $962 million against a $122 million profit last year. The interim dividend is scrapped.
Kazakhmys accepted what many in the City consider to be a low-ball offer for its stake in ENRC after increasing concerns over its prospects. ENRC has been weighed down by an anti-fraud probe and boardroom bust-ups, and was infamously labelled "more Soviet than City" by one former director.
A consortium led by the three founding oligarchs of ENRC will soon buy back the iron ore-to-aluminium group for about £3 billion. Kazakhmys will receive $875 million in cash, which will be used to pay off debt. Chief executive Oleg Novachuk said ENRC "did not create the opportunities that we had anticipated". He added: "The outlook for ENRC as a listed business became increasingly uncertain, and the board believed that the risk of further erosion in value was considerable."
The shares today edged 3.95p up to 305.45p but longer-term investors have nursed huge losses after Kazakhmys began the year at more than 800p. However, Novachuk argued that cost inflation has proved lower than anticipated, and annual copper production should be at the "upper end" of expectations.
Philip Aiken stepped down as a non-executive director. He was chairman of Kazakhmys' health, safety and environment committee but said that this seemed an "appropriate time to retire from the board".
Aiken was also the senior non-executive director, a role that will be filled by Michael Lynch-Bell.
- 1 Nokia no more: Microsoft drops once-ubiquitous mobile name – in favour of its Lumia brand
- 2 Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Couple die within 28 hours of each other after being married for 73 years
Ottawa shooting: Canadian soldier dies after being shot at National War Memorial – with one gunman killed inside parliament
Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
Diwali 2014: What is the festival of lights and how is it celebrated around the world?
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...