Hogan Lovells Advises Eurasian Natural Resources on US$735m Brazilian Acquisition

LONDON, 7 October 2010 - Hogan Lovells has acted as counsel to London-listed Kazakh mining company, Eurasian Natural Resources Corporation PLC (ENRC) on the purchase of the outstanding interest in Bahia Minerals BV (BMBV) from Ardila Investment NV for a cash sum of US$670m and the assumption of debt of US$65m. The US$735m deal, which sees ENRC take full ownership of BMBV, closed on 21 September 2010.

Under the transaction, ENRC has purchased the outstanding 50% of BMBV from Ardila Investments NV which ENRC did not already own and significantly expanded its Brazilian interest.  In addition, ENRC secured an option to purchase 100% of the outstanding shares of Block V Limited and Caera Minerals Limited, which together own Greystone Mineracao do Brasil Limitada (‘Greystone’), for up to US$150m.

ENRC is one of the world's leading natural resources groups, integrating mining, processing, power and logistics operations and is listed on the London Stock Exchange in the FTSE 100.  

The Hogan Lovells team was led by London-based partners, Steven Bryan and Ben Higson, assisted by London-based corporate associates Oliver Searle, Shrina Shah and Matteo Matteucci, finance consultant Nick Tidnam and tax partner Phillip Harle, and a team from the Hogan Lovells Amsterdam office led by partner Victor de Vlaam.

Commenting on the deal, Steven Bryan said:

"We are pleased to have been able to assist ENRC in the latest acquisition under its strategy of commodity and geographic diversification.  The deal played to our strengths as experienced cross border M&A lawyers with a focus on the energy and natural resources sector.


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