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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Eurasian | ENRC | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
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|---|---|---|---|---|
| 0.00 | 0.00% | 217.50 | 00:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 217.50 | 217.50 |
| Top Posts |
|---|
Posted at 28/6/2013 17:31 by faza3 Glencore International plc ("Glencore") response to press speculation - Eurasian Natural Resources Corporation plc ("ENRC") In response to press speculation, Glencore confirms that it is not in active consideration of an offer for ENRC. As a consequence of this announcement, the Panel Executive has ruled that Glencore is subject to Rule 2.8 of the City Code on Takeovers and Mergers in relation to ENRC. Glencore however reserves its rights to make an offer in the future with the consent of the Takeover Panel, with the recommendation of the Board of ENRC, in the event of a third party offer for ENRC, or in the event of a material change in circumstances. Wednesday 15 June, 2011 will they come back |
Posted at 22/6/2013 21:38 by tanzz786 New £3bn offer to take ENRC privateThe founders of the mining giant ENRC are poised to table an unchanged £3bn offer in order to take the troubled company off the London market. It is understood that the founders, led by Alexander Machkevich, will tomorrow table a firm version of an indicative offer which in May was rejected by independent directors. The offer will actually value ENRC at less than the earlier indication. Despite that, the move is likely to be accepted by a committee of independent directors because of the lack of other options and the wider sell-off in mining stocks. The move, if accepted by minority investors, will trigger the departure of ENRC from the London Stock Exchange after a turbulent six years in which directors have been ousted and the Serious Fraud Office (SFO) has been carrying out an investigation. Sir Richard Sykes, the non-executive director, said at the height of its problems in June 2011 that the company should never have been listed in the first place. He also accused the company's chairman and chief executive at the time of being "in the pocket" of its founding shareholders. The fully financed offer is expected to be announced by the consortium which accounts for 56pc of ENRC's investors including the Kazakh government's 12pc stake, ahead of a Takeover Panel deadline of 5pm tomorrow . The offer is expected to be the same as that originally tabled on May 16, offering 175p-a-share in cash and 0.231 shares in Kazakhmys for each ENRC share. At the time, it valued each ENRC share at 260p. However, due to exchange-rate differences since then - the consortium's financing was arranged in dollars by bankers led by Société Générale - and the fall in Kazakhmys's share price, the offer is actually worth less. At the time the approach was made, Kazakhmys's share price stood at 370p. However, at Friday night's market close, the share price of the Kazakh miner stood at 272.13p. As a result, the offer values ENRC shares at 238p each, before taking into account the currency fluctuations. On Friday, Macquarie analyst Alon Osha set a target price of 236p for the offer, some 10pc below the original, but above Friday night's closing price of 216.9p. One source said that the terms of the initial offer "were never going to change," suggesting that the founders feel there is nothing to be gained in reputational terms from upping the offer. It is understood that, despite the decreased value, the independent committee set up to consider the approaches will reluctantly recommend it to shareholders. Sources this weekend indicated that the seven-strong committee, chaired by former World Bank director, Mohsen Khalil, is likely to set out the difficult nature of the task in an attempt to absolve themselves from blame from minority investors. In late May, Mr Khalil instructed bankers Lazard and Credit Suisse to work separately to establish the value of the miner, asking them to develop valuations based on a number of variables, including competitors, its economic value were it to be sold and a sum-of-the-parts model. In deciding whether to accept the approach, the committee will know that were they to reject the offer, and the consortium walk away, the company's share price would slide significantly, making it cheaper to table a lower offer in the future. As a result of the complex deal, the Kazakh government's stake in Kazakhmys - which has a 26pc stake in ENRC - will reduce to zero, and its free float will increase to 58pc. It is listed in London. ENRC was listed on the London Stock Exchange in December 2007 after raising £1.36bn, the second-biggest stock market float of the year. The company, which mines coal, iron ore and ferrochrome among other minerals, floated at a share price of 540p, valuing it at £6.8bn. ENRC was founded by three Kazakh businessmen - Mr Machkevich plus Patokh Chodiev and Alihan Ibragimov - in 1994. In March 2008, four months after floating, it became a member of the FTSE 100 index, hitting highs of £12.50 in 2010. But by December that year , the company's problems began, when Sir Richard and other independent directors, including Ken Olisa, began to question the way the board operated. By March 2011, solicitors Herbert Smith were hired by the independent directors to ask about the ramifications of resigning en masse. In June that year, Mr Olisa coined the term "more Soviet than City" to describe the company after he and Sir Richard were voted off the board by its Kazakh shareholders. Mehmet Dalman, a former Commerzbank banker, was drafted in as chairman shortly afterwards, pledging to clean up the business. But Mr Dalman resigned in April this year saying he had "achieved all that I can". The SFO continues to work on its criminal investigation into the miner, looking at allegations of fraud, bribery and corruption related to its business in Kazakhstan and Africa. Adding to the pressure for the company to go private, the UK Listing Authority has asked that the group increase its free float to 25pc from 18pc by January 2014 or leave the market. |
Posted at 19/6/2013 11:54 by harmeet1981 copied this from the KAZ board, which way do you guys the deal will be heading?:This is SBM's take on were we are at. hxxp://www.-.com/blo As we race down to the 2nd deadline of next Monday at 5PM for the 3 oligarchs to table a firm bid for ENRC (and there is unlikely to be a 3rd extension), we find ourselves in an intriguing game theory situation. Given that the independent Board of Directors rejected the last offer as "materially undervaluing" (their words not ours) ENRC (and this was at an equivalent price of 260p), with the price of KAZ continuing to plumb stupid depths, it is indeed an interesting conundrum that the oligarchs and the Board find themselves in... The market was wrong footed previously bidding ENRC stock up to nearly 320p in the days ahead of the deadline, and with metal prices under pressure again in recent days taking the shares lower, question is has the market now got it wrong in reverse this time? We are in fact now in the somewhat peculiar situation of ENRC's shares trading just less than where they were before the bid announcement and the bid already being rejected by the BoD as inadequate. Go figure that one... We highly doubt, for all the reasons opined on this blog in recent weeks, that the 3 oligarchs want the company to remain in the public eye and the legal maneouvring in recent weeks to enable them to see the bid through points to some type of final offer being made. And so we come to one of 3 possible conclusions to this unique situation - 1. The oligarchs do not bid and, at face value, call the markets bluff. They only hurt themselves here however as the stock will likely fall back towards 200p AND, instead of getting the company on the cheap, they actually have to dilute themselves to meet the UK listing rules requirements. This dilution is the polar opposite of what they were/are trying to achieve. The other point is they would be restricted from bidding for a further 6 months at which point the commodities spectrum, in particular iron ore, may bounce back and so lift the ENRC valuation. Of course the SFO investigation is all aired in public too. I just don't see this as a likely outcome but between this Kaz and AVM the market has thrown egg on my face this last 4 months so don't discount it. 2. A final bid tabled on the same terms. Given that they cannot increase the KAZ shares component as this is a fixed sum (ie the Kazakhstan Govt hold a fixed number of KAZ shares), then the new bid is presently worth just 244p at the current KAZ price. Highly doubtful the independent BoD will sanction this and so we would be in the somewhat unusual situation of a Company's Board actively pushing minorities to vote against the main shareholders. Net effect - more mess, likely further weakness on KAZ's price, and so an even less value end bid. 3. A decent increase in the cash component (likely to 220-25p) that has the independent BoD acquiesce and, in all probability, keeps Suleiman Kerimov's peace (he has supposedly written to the Company's Board pushing for 400p or thereabouts). Again, per (2), the KAZ component is fixed and so through raising the cash element from a real steal to just a steal, the net effect on KAZ's stock price as the company would receive more cash for their stake in ENRC, will be to finally break the downtrend from over 800p and probably take the stock price back towards 400p (which as you can see from below is what the wedge break pressages). At a 400p KAZ stock price and with 225p in cash the bid for ENRC would be worth approx 317p. The bit that I am trying to get my head around is why Vladimir Kim would be happy to allow a low ball offer to be pushed through. He has pledged 91m of his shares for personal loans unrelated to KAZ. Probably when KAZ was substantially higher than it is today. Any further fall in the price of KAZ could mean he may be forced to sell his shares to raise the funds to repay those debts. |
Posted at 04/6/2013 10:19 by pro_better from share price ANGEL today:ENRC (ENRC LN) 246p, mkt cap £3.16 billion ENRC founders given three week extension on offer · The founders of ENRC have been given a three week extension to resolve technical issues relating to their bid to take the company private. · The founders now have till 24 June to make a firm offer to buy the company. · The bidders have made a written assurance that they will be in a position to bid by this data. · While we see the Kazak founders as good horse traders, we also believe they will be good to their word, particularly with market conditions looking potentially better for ferrochrome in our view. · ENRC directors have also indicated that they expect to see an improvement on the terms offered by the founders.. Conclusion: Corporate governance issues have caused the shares to come down but no one can force the founders to raise their offer. It is disappointing that the poor governance of a company can effectively cause the withdrawal of such a solid underlying business from the listed market. The issue highlights the issue of having good and strong non-executive director guidance |
Posted at 26/5/2013 22:35 by nolens volens bigbigdave - Not sure how much store I would set by that \"Sunday Times\" piece today. \"Kazakhmys, a rival resources group with operations in Kazakhstan, has signalled privately that it will vote its 26% stake in favour of the controversial offer tabled by ENRC's three oligarch founders and the Kazakh government.\" That all sounds a bit too Secret Seven meeting in the garden shed for my liking. Signalled to whom? DF of the Sunday Times lol.Apart from anything else, there is no clarity that kaz will even get a vote here. If they do then their stake in enrc is so large that they would have to put any proposed bid for enrc to their own shareholders and it is extremely unlikely that the kaz govt. which holds 26% of the kaz plc stock would be able to vote as they are a member of the bidding consortium. Have a look at the articles in the Wall Street Journal this week saying \"The U.K. Takeover Panel also ruled Monday that Kazakhmys should be treated as part of the offer even though it isn\'t part of the consortium, meaning Kazakhmys won\'t be able to weigh on the deal if it is put to an ENRC shareholder vote. It will, however, still be able to tender its shares if the consortium makes a takeover offer, two people familiar with the matter said.\" http://online.wsj.co And this from the Spread Betting Magazine \"If the Scheme of Arrangement structure is still intended to be used then, re the comment "..for Panel purposes only Kazakhmys is treated as a Party to the Offer...", we are unclear as to whether they will be able to vote their shares in ENRC too. If that is the case, then it seems the bid doesn't have a hope in hell in getting through at the current level as the balance minorities have made their feelings clear on the price\" http://www.-.com/blo |
Posted at 28/4/2013 19:25 by smurfy2001 You're right HVS!Rethink listing rules after ENRC, says top shareholder The Government and regulators must urgently re-draw the UK's listing rules to stop foreign firms with lapsed controls from being presented as premium stocks, a leading shareholder has warned, as fresh details emerged of the crisis at miner ENRC. His call emerged after the Serious Fraud Office (SFO) on Thursday launched a criminal investigation into ENRC. As part of its inquiry, it will examine more than $100m (£64m) of payments to offshore accounts, The Sunday Telegraph revealed. The accounts were being scrutinised by Dechert, the law firm sacked in controversial circumstances by ENRC this month. A letter sent to ENRC by Dechert after it was fired makes claims that the internal investigation discovered "payments to African presidents", according to The Sunday Times. ENRC said there was "no evidence to substantiate these allegations". |
Posted at 24/4/2013 21:17 by nolens volens UBS analysts eye ENRC bidThe bank's experts said an offer could be "significantly above market value". As dealers picked over the troubling implications of Mehmet Dalman's resignation as chairman of potenial bid target Eurasian Natural Resources Corporation , analysts had better news for traders, speculating a blockbuster offer for the miner could be in the works. The experts at UBS (Berlin: UBRA.BE - news) noted that the consortium of three founding ENRC investors and the Kazakh government considering an offer for the group are likely to bid for both Kazakhmys (LSE: KAZ.L - news) 's 26pc stake in the company as well as ENRC's free float, because the suitors would need 75pc shareholder approval to take the miner private. That, the analysts argued, meant an offer may be "significantly above market value", as Kazakhmys is likely to "leverage" its influential position to "extract optimal value for itself and ENRC minority shareholders". Kazakhmys, they said, was unlikely to agree to an offer of less than 375p a share - the value at which it recently wrote down its ENRC stake - while a bid of 540p - ENRC's 2007 flotation price - was also possible. That would be a significantly premium to yesterday's close of 280.7p, down 1.6p. If the consortium did make a knock-out bid for ENRC it would be "materially positive" for Kazakhmys's own share price, the UBS analysts concluded. The optimistic assessment helped Kazakhmys advance 23.94 to 359p on the FTSE 250, taking into account the shares were trading without right to the latest dividend |
Posted at 11/2/2013 16:53 by smurfy2001 Should you buy shares in Eurasian Natural Resources Corporation plc (LON: ENRC)?A confluence of factors has pressured Eurasian Natural Resources Corporation (ENRC) (LSE: ENRC) in recent times: rising operational costs, depressed ferrochrome prices and escalating debt levels have all put the giant ferrochrome producer under the cosh. Although a dodgy balance sheet could present more problems further down the line, I sense rocketing production in coming years could propel the share price skywards. Copper-bottomed strategy ENRC -- whose primary assets are located in the mining hotbed of Kazakhstan -- boasts extensive operations across a multitude of areas, encompassing ferroalloys, iron ore, alumina and aluminium, energy and logistics. ENRC announced earlier this month that its total annual production of saleable ferroalloys, electricity and coal had hit their highest levels since the group's 2007 flotation. In a bid to increase its exposure to the copper market, the company completed the acquisition of the remaining 49.5% stake in Camrose -- which owns various red-metal projects in the Democratic Republic of Congo -- for $500 million at the end of December. Eurasian has earmarked capital expenditure of $300 million to develop these African assets this year. Credit Suisse expects production volumes across the group to step up significantly in coming years and drive earnings growth. Ferrochrome output is projected to rise almost 1% in 2013 to 1.505 million tonnes, before shooting to 1.605 million tonnes in 2014, a 6.6% annual increase. Copper production, meanwhile, is forecast to rise 57.1% to 55,000 tonnes this year and then 127% in 2014 to 125,000 tonnes. Balance sheet blues Expectations of a small equity raising continue to rumble due to ENRC's suffocating debt levels and fears of a possible debt-covenant breach by the end of the year. The company recently announced that it expects net debt to come in at $5 billion for the end of 2012 -- as an aside, ENRC was in a net cash position in 2010 prior to embarking on its acquisition spree. I must admit the borrowing situation remains precarious, although the possibility of asset divestment could help allay fears. As well, takeover speculation has heated up in recent weeks as the likes of Kazakhmys are said to be considering a swoop. Earnings ready to ignite Analysts expect ENRC's earnings per share to have collapsed almost 70% in 2012 to 30p, before bouncing 10% back to 34.4p the following year. A 44% jump is then anticipated in 2014 to 49.5p as production volumes balloon and commodity prices improve. The level of risk attached to ENRC is reflected by a P/E ratio of 11 for 2013, down from 12.1 the previous year, and which is set to fall to a lowly 7.6 for 2014, according to the current City broker consensus. Provided management can successfully hurdle recent problems, I reckon ENRC could pay off handsomely for the more risk-tolerant punter. |
Posted at 29/8/2012 08:57 by cfb2 As an apology for lowering the tone here yesterday (I was led on by bracke...), here is ING Equity Research's note on the sell side:ENRC's rapidly escalating debt burden is now the key concern for investors and we expect the stock to continue its underperformance while this remains the case. We see the deferral of ENRC's most capex intensive projects as inevitable but in the absence of a meaningful recovery in spot prices for ferrochrome and iron ore we still expect net debt/EBITDA to exceed 2x within six months. We believe ENRC may eventually need to consider selling some of its more attractive assets (e.g. African copper) or raise capital via new equity. We downgrade our target price for ENRC to 325p (previously 430p) and retain our SELL recommendation. Debt load rapidly rising, earnings outlook weakening. ENRC's net debt has moved from zero to US$3.4bn in just a year. We expect net debt to reach US$4.6bn by end 2012 with net debt/EBITDA at 2.04x (just above management's internal threshold of 2.0x but below bank covenants of 3.0x). Given a weakening outlook for ENRC's main commodities ferrochrome and iron ore we have reduced our EBITDA forecasts for 2012 and 2013 by 18% and 10%, respectively. Our earnings estimates are below consensus. Debt burden not compatible with aggressive growth strategy. With ENRC lacking the debt capacity to fund its expansion strategy (see our Supercycle hangover report of 29 May 2012) management is now deferring large projects and prioritizing less capex intensive projects such as the Frontier and Kolwezi copper projects in the DRC. However, given our scepticism over ENRC's ability to execute and fund its overseas projects, our capex assumptions are already quite conservative and we do not see material downside to our 2013 capex assumption of US$1.8bn (including US$800m of maintenance capex). Asset sales or new equity required? Selling stakes in ENRC's overseas iron ore and coal projects could prove difficult in current market conditions although its copper assets remain more appealing to investors, in our view. However, in order to avoid selling its best assets towards the bottom of the cycle we think issuing new equity may also be an option which could also address FTSE requirements to increase free float to 25%. We think it far too early for ENRC to be considering a demerger for its international assets. Valuation: We lower our target price to 325p (a 15% discount to NPV) and reiterate our SELL recommendation. On our updated estimates, ENRC trades on an EV/EBITDA of 5.6x for both 2012F and 2013F. ING say that the net debt will reach $4.6bn by the end of 2012 following the spending spree on development projects in Africa and estimate that ENRC will need to raise $550m. All this at a time when inflated debt is bad and mining assets are selling for rock bottom prices. The possibility of new equity is therefore likely to be considered and that is what is driving the current share price. CFB |
Posted at 25/8/2012 16:18 by smurfy2001 Don't panic...from ft alphaville,BE ENRC getting some attention Eurasian Natural Resources Corporation PLC (ENRC:LSE): Last: 338.90, down 12.6 (-3.58%), High: 349.70, Low: 336.00, Volume: 1.36m BE It's a well known story BE Bought exploration assets at the top BE Loaded up on debt BE For stuff that won't hit production until 2015 BE Which ain't great when everything you produce is in a bear market. BE ING steps forward this morning with the idea that ENRC's balance sheet may not be awfully robust. BE Meaning a share issue or disposals..... DR Ouch. BE ... an idea that seems to be gathering force this week. BE ENRC's rapidly escalating debt burden is now the key concern for investors and we expect the stock to continue its underperformance while this remains the case. We see the deferral of ENRC's most capex intensive projects as inevitable but in the absence of a meaningful recovery in spot prices for ferrochrome and iron ore we still expect net debt/EBITDA to exceed 2x within six months. We believe ENRC may eventually need to consider selling some of its more attractive assets (e.g. African copper) or raise capital via new equity. We downgrade our target price for ENRC to 325p (previously 430p) and retain our SELL recommendation. BE Debt load rapidly rising, earnings outlook weakening. ENRC's net debt has moved from zero to US$3.4bn in just a year. We expect net debt to reach US$4.6bn by end 2012 with net debt/EBITDA at 2.04x (just above management's internal threshold of 2.0x but below bank covenants of 3.0x). Given a weakening outlook for ENRC's main commodities ferrochrome and iron ore we have reduced our EBITDA forecasts for 2012 and 2013 by 18% and 10%, respectively. Our earnings estimates are below consensus. BE Debt burden not compatible with aggressive growth strategy. With ENRC lacking the debt capacity to fund its expansion strategy (see our Supercycle hangover report of 29 May 2012) management is now deferring large projects and prioritizing less capex intensive projects such as the Frontier and Kolwezi copper projects in the DRC. However, given our scepticism over ENRC's ability to execute and fund its overseas projects, our capex assumptions are already quite conservative and we do not see material downside to our 2013 capex assumption of US$1.8bn (including US$800m of maintenance capex). BE Asset sales or new equity required? Selling stakes in ENRC's overseas iron ore and coal projects could prove difficult in current market conditions although its copper assets remain more appealing to investors, in our view. However, in order to avoid selling its best assets towards the bottom of the cycle we think issuing new equity may also be an option which could also address FTSE requirements to increase free float to 25%. We think it far too early for ENRC to be considering a demerger for its international assets. BE Valuation: We lower our target price to 325p (a 15% discount to NPV) and reiterate our SELL recommendation. On our updated estimates, ENRC trades on an EV/EBITDA of 5.6x for both 2012F and 2013F. BE Not sure how much this idea of an international asset spin-off has been a distraction rather than an actual plan. BE Looking at the figures, I have to agree with ING here. It doesn't look possible. BE The assets don't generate any cash, and ENRC can't afford to subsidise it as a split entity. BE Anyway, that's that one. 11:21AM |
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