Shukhrat Ibragimov Seeks Control of ERG in High-Stakes Buyout Push — FT

Shukhrat Ibragimov, son of the late Kazakh oligarch Alijan Ibragimov and one of the country's wealthiest individuals, is attempting to take control of Eurasian Resources Group (ERG) by buying out the stakes of his father’s former partners, according to reporting by the Financial Times, reports Orda.kz.

Ibragimov, who currently serves as CEO of ERG, has reportedly approached Patokh Chodiev and the heirs of Alexander Mashkevich with an offer to acquire their combined 40% share in the company. Sources familiar with the situation told the Financial Times that negotiations began last year but picked up momentum following Mashkevich’s death in March.

The three men — Ibragimov, Chodiev, and Mashkevich — co-founded ERG in the post-Soviet privatization era, building it into a company once valued at £13 billion. The so-called "trio" took ERG public on the London Stock Exchange and launched major mining operations in Africa.

Following Alijan Ibragimov's death, his son Shukhrat joined ERG's board in 2021. In a generational transition, Chodiev’s board seat was passed to his son Sabir, and Mashkevich was succeeded by his nephew Eduard Surlevich.

Although Chodiev and the Mashkevich heirs are reportedly open to a deal, sources say disagreements over valuation have stalled progress. The Financial Times reported that the sellers are seeking $1.8 billion for their stake, while Ibragimov is offering significantly less, leading to occasionally tense negotiations.

To facilitate the buyout, Ibragimov has proposed a partial payment in the form of his stakes in the Eurasian Bank and the Eurasia insurance company, with the remainder to be settled in cash.

ERG, which is headquartered in Luxembourg, is currently split among four stakeholders: the three oligarchic families each hold 20%, while the government of Kazakhstan owns the remaining 40%. None of the stakeholders has publicly confirmed the negotiations, and ERG itself described the matter as an internal corporate issue.

One individual familiar with the situation told the Financial Times that the Kazakh government may favor Ibragimov's bid, viewing him as a long-term strategic leader for the company.

However, officials have not commented publicly on the matter.

Original Author: Nikita Drobny