Kazakhstan Miner Faced With Bidding War

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Businessman Shakhmurat Mutalip is in talks to buy a 40% stake in Eurasian Resources Group, one of Kazakhstan’s largest miners, a bid that rivals a similar offer made by shareholder Shukhrat Ibragimov earlier this year.

In May, Ibragimov, who controls around 20% of ERG, had offered an undisclosed amount to buy out Patokh Chodiev and the family of the late Alexander Mashkevich, who own around 20% each. Ibragimov’s father Alijan, Chodiev, and Mashkevich were once known as the “Eurasian Trio.”

According to a December 23 FT article, Mutalip offered around $1.4 billion for the combined Chodiev and Mashkevich shares. Should either of the deals go through, Kazakhstan’s government would retain a 40% stake in the company, which was once listed in London as ENRC.

Ibragimov, according to people familiar with the matter, has a right of first offer, which could block Mutalip’s plan.

Since 2020, Mutalip controls Integra Construction KZ, a railway and road maintenance company, once called Zhol Zhondeu and co-owned by Orifjan Shadiev, Chodiev’s son. According to Forbes, Integra is the 12th largest private company in Kazakhstan with a net profit of 35.4 billion tenge ($69 million).

In November, Bloomberg reported that Mutalip’s Integra had offered to buy Glencore’s 70% stake in Kazzinc, another large miner.

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