February 14, 2013 / 1:21 PM / in 5 years

UPDATE 1-Kazakh wealth fund paid $1.65 bln for Kazzinc stake

ASTANA, Feb 14 (Reuters) - Kazakhstan’s wealth fund Samruk-Kazyna said on Thursday it had paid $1.65 billion for a 29.8 percent stake in Glencore-controlled zinc producer Kazzinc.

The fund originally declined to disclose the sum of the deal when its deputy head Kuandyk Bishimbayev told reporters about the acquisition on Feb. 7.

Glencore also declined to comment at the time.

Local analysts then estimated the price of the stake, acquired from Kazakh company Verny Capital, at $2.1 billion.

Samruk-Kazyna said on Thursday it had borrowed funds to finance the Kazzinc deal, but gave no further detail.

The fund, Kazakhstan’s largest holding company, added the zinc miner to its stakes worth over $80 billion in domestic companies including miners, airlines, railways and banks.

Its deal prevented Glencore from achieving its goal for ownership of Kazzinc.

Glencore, which owns 69.61 percent, had earlier said it intended to boost its stake in Kazzinc to 93 percent for a total of $3.2 billion, including $2.2 billion in cash and $1 billion in equity.

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