Kazakhmys has entered into an agreement to sell to Samruk-Energo (a wholly-owned subsidiary of Samruk-Kazyna) its remaining 50% interest in Ekibastuz and 100% its stake in Kazhydro for a gross consideration of US$1.3bn in cash, subject to certain consents, approvals and conditions.
Samruk-Kazyna, which is ultimately beneficially owned by the Government, will then become the sole shareholder of Ekibastuz. The power plant has a total capacity of 4,000 MW and the majority of its generated electricity is sold to third parties based in Kazakhstan, with the remaining output exported to Russia.
The transaction also included a 100% stake in Kazhydro, a company established to develop seven small hydropower plants in Kazakhstan with aggregate capacity of 108 MW; Kazakhmys owns a 35% stake in the company. The Transaction will be conditional upon, inter alia, the approval of a majority of independent Shareholders and on the approval of the relevant governmental authorities in Kazakhstan.
Kazakhmys is one of the world's leading natural resources groups, active in copper mining and refining and in the power sector through this 50% stake in Ekibastuz.