China’s Zijin Mining Group purchased RG Gold, a Kazakhstan-based gold miner, within the newest enterprise transaction by billionaire Bulat Utemuratov.
RG Gold exploits gold mines within the northern Akmola area of Kazakhstan, close to the capital Astana. By a Luxembourg-based firm, in flip owned by the holding Verny Worldwide, Utemuratov managed 65 % of RG Gold.
Zijin Mining spent $1.2 billion to purchase the corporate, which has the rights to develop one of many largest gold deposits in Kazakhstan.
On the finish of September, Zijin Mining turned the third-largest gold miner on this planet, after its market capitalization surpassed $100 billion. With gold costs above $4,000 per ounce, this might be an enormous deal for the Chinese language firm.
“The Raygorodok Gold Mine can generate favorable synergies with the Jilau/Taror Gold Mines in Tajikistan and the Taldybulak Levoberezhny Gold Mine in Kyrgyzstan [and] may help Zijin Gold Worldwide additional deepen its engagement within the Central Asia area sooner or later,” in response to the corporate’s October 12 press launch.
In 2022, RG Gold inaugurated a brand new mining and smelting advanced with a processing turnover of as much as 5 million tons of gold ore per 12 months, which was co-financed by the Growth Financial institution of Kazakhstan for $297 million.
The deal ought to internet Utemuratov round $780 million.
Utemuratov is one in all Kazakhstan’s richest businessmen. His shut relationship with former President Nursultan Nazarbayev actually helped his enterprise offers. In line with a leaked 2007 U.S. diplomatic cable, Utemuratov is “a billionaire who has by no means had a enterprise.”
In actual fact, he famously turned the nation’s first billionaire in 2007, when he bought his stake in ATF Financial institution to Italy’s UniCredit Group for $2.2 billion, which was thought of an inflated worth and turned the deal right into a “catastrophe” for UniCredit.
With the funds, Utemuratov financed Verny Capital, his funding car that acquired an curiosity in one other key miner, Kazzinc – which was later bought to commodity dealer Glencore for $3.2 billion.
In 2014, Verny obtained the rights to discover the Raygorodok plot and established RG Gold.
At current, Utemuratov controls telecoms firm Beeline, the Burger King franchise, and ForteBank, the nation’s fifth-largest financial institution.
In September, the Company for the Regulation of the Monetary Market authorised ForteBank’s bid to purchase Residence Credit score Financial institution, Kazakhstan’s Eleventh-largest financial institution. The deal would reinforce ForteBank’s place out there. By the tip of September, ForteBank had already accomplished the acquisition of a 26.8 % stake in Residence Credit score. On October 15, ForteBank postponed the shareholder assembly that ought to have led to the completion of the deal, from October 29 to February 26 subsequent 12 months.
Earlier in October, Kazakhstan’s ambassador to Hungary, Abzal Saparbekuly, stated that OTP Financial institution was focused on investing in Kazakhstan. Rumors advised that OTP Financial institution might take over ForteBank.
On October 16, Forbes Kazakhstan revealed two official responses that didn’t resolve the doubts. OTP stated that it’s “actively exploring new acquisition targets, significantly in Central and Jap Europe, in addition to different nations with excessive progress potential,” with out mentioning ForteBank, which in flip stated they’ve “no info” concerning any negotiation.
This might be yet one more sale for Utemuratov, who has already bought his media outfit Channel 31 and his stake within the Ritz Carlton Vienna lodge previously two years.
Identified for his efforts in rising Kazakhstan’s repute on this planet of tennis, Utemuratov has additionally made various charitable donations, funding the reconstruction of the airport in Kyzylorda, in addition to the development of a college and a sports activities middle in Kosshy, within the outskirts of Astana.
Having concentrated various worthwhile companies underneath his Verny conglomerate over time, Utemuratov has progressively, and profitably, bought off various property. Ought to ForteBank be subsequent, this could be the primary time in additional than a decade {that a} top-five lender within the nation is foreign-owned.