The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Kazakhstan: Takeover wants to revive ShalkiyaZinc

Equity cure to indebtedness ills; Holding company looking to list subsidiaries

A Kazakh industrial company is investing $400 million over the next four years to bail out and revitalize the owner of the rights to the country’s biggest zinc deposit.

SAT & Co has made a capital investment in cash-strapped miner ShalkiyaZinc in a move that it is hoped will revive the indebted company’s fortunes.

Under the terms of the agreement SAT will inject $50 million into ShalkiyaZinc in return for an 81.39% stake of the company’s expanded share capital. SAT will pay $2.023 a share for 24.7 million or so new shares – equivalent to the trading average of ShalkiyaZinc’s London Stock Exchange-listed global depositary receipts in the previous six months. As a result the former majority shareholders, who held 74.45% of the issued share capital of ShalkiyaZinc, will be diluted down to 13.85%, while the GDR holders’ stake will be cut from 25.55% to 4.75%.

When the proposed transaction is completed SAT will submit a mandatory offer for the remaining 19% of outstanding shares in the company. Houlihan Lokey (Europe) is acting as financial adviser to ShalkiyaZinc, while Renaissance Capital is advising SAT.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree