Shareholders for London-listed Kazakh mining company Kaz Minerals are uniting to oppose a buyout bid by its chairman and a copper mining tycoon.
CFC Management, a Russian investment advisor, is set to investigate the bid and collect a consensus from other shareholders alongside advisory company Georgeson.
Kaz Minerals' chairman Oleg Novachuk and Kazakh billionaire mining tycoon Vladimir Kim have offered to buy out the 61% of the company they do not own allowing them full control over the operations of the copper company.
They will be attempting to purchase this majority at 640p a share through a consortium called Nova Resources, coming to a total of £3 billion.
In an email sent to shareholders, Georgeson said: “CFC Management would welcome the opportunity to exchange views on the offer for Kaz Minerals as well as hear what you have to say on the subject."
However, a few of the top-10 investors in the company have said they will vote against the bid.
CFC has argued the bid could restrict the company's growth potential, while RWC Partners, another shareholder, has said it could hinder the company's future projects.
Investors will be able to raise any concerns they have before a judge at a hearing on November 23.
The acquisition is conditional and will require a 75% approval to go ahead.
It will also have to be free of antitrust clearances and will have to be sanctioned by the High Court of Justice for England and Wales.
The hearing is being held to show that numerous investors have as much sway in the deal as the two majority shareholders, which could lead to the deal being vetoed.
On the deal, CFC Management chief executive Ekaterina Chernova said: “If successful at the current value and without an increase in price, the offer will prevent the current minority shareholders of Kaz Minerals from realising the full value of their investment.
“We will advise our clients to vote against the offer."
In a statement, CFC said: “CFC Management continues to review the terms of the proposed transaction and is working on its statement and arguments in anticipation of the court hearing on November 23rd.”
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