Business
Agreement with AltynGroup
Agreement with AltynGroup.
About this update from Kazera Global Plc
[{"type":"text","content":"\n RNS Number : 5858X KazakhGold Group Ltd 08 December 2010 \n \n\n\n\n\n\nFor immediate release\n\n\n8 December 2010\n\n\n\n\nAgreement with AltynGroup for the Sale of Subsidiaries and Related Matters\nThe Board of KazakhGold Group Limited (\"KazakhGold\") announces that it has today entered into a principal agreement (the \"Agreement\") for the sale of its operating subsidiaries and related matters (the \"Transaction\") with AltynGroup Kazakhstan LLP (\"AltynGroup\"), a limited liability partnership controlled by members of the Assaubayev family. The Transaction is subject to a number of conditions, including release of the claims made by KazakhGold, Jenington and JSC Kazakhaltyn MMC against Gold Lion and members of the Assaubayev family, approvals from the Government of the Republic of Kazakhstan, receipt of financing by AltynGroup to complete the transactions and the entry into definitive agreements. \nAs part of the Transaction, KazakhGold will sell, subject to a number of conditions, its interests in its operating subsidiaries in Kazakhstan, Romania and Kyrgyzstan to AltynGroup. The total cash consideration is approximately US$509 million, which will be partly satisfied by the set off of the principal amount of the existing loan of approximately US$31 million to Gold Lion Holdings Limited (\"Gold Lion\"), a company controlled by trustees of discretionary trusts, the beneficiaries of which comprise members of the Assaubayev family and the value of the approximately 9% shareholding in KazakhGold held by Gold Lion. Under the Agreement, the sale by KazakhGold of its operating subsidiaries is conditional, amongst other things, on the settlement of all outstanding claims and actions between the parties, and the receipt, of all necessary waivers and approvals from the Kazakhstan Government in relation to the Partial Offer by Jenington International Inc. (\"Jenington\"), an indirect wholly-owned subsidiary of Polyus Gold (\"Polyus Gold\"), for KazakhGold completed in August 2009 and the US$100 million equity share placement completed by KazakhGold in July 2010, as well as the receipt of all necessary waivers and approvals for a possible business combination between KazakhGold and Polyus Gold.\nThe sale of shares in the operating subsidiaries is expected to be completed in two tranches, with approximately 65% of the sha...