Kazakhstan's sovereign wealth fund, Samruk-Kazyna, yesterday acquired a 29-per cent stake in Glencore-controlled zinc producer Kazzinc.
Without disclosing the financial terms of the acquisition, Samruk-Kazyna's deputy head, Kuandyk Bishimbayev, told reporters, "The Kazzinc deal is closed, and today we own 29 per cent in this enterprise."
Bishimbayev said that Samruk-Kazyna bought the stake from Kazakhstan billionaire Bulat Utemuratov controlled investment firm Verny Capital.
According to Reuters, Kazakh investment bank Halyk Finance, which closely monitors Glencore and Kazzinc, said that based on the price Glencore paid Verny in October 2012 for 18.91 per cent of Kazzinc, Samruk-Kazyna would have paid about $2.1 billion.
Glencore paid $1.4 billion exclusively in stock to acquire 18.9 per cent of Kazzinc from Verny, raising its stake to 69.61 per cent.
Kazzinc, formed through the 1997 merger of Eastern Kazakhstan's three main non-ferrous metals companies, is a major, fully integrated zinc producer, with considerable copper, precious metals and lead credits.