Nova Resources BV agreed to acquire KAZ Minerals PLC in a deal that values the Kazakh copper producer at about £3.0 billion, according to an Oct. 28 release. The news sent the London-listed company's shares soaring over 9.5% in morning trade, giving it a market cap of about £2.95 billion.

KAZ said the offer of 640 pence per share represents a premium of 16.5% to KAZ's 549.2-pence-per-share volume-weighted average price for the one-month period ended Oct. 27.

Nova is controlled by a consortium owned by KAZ Minerals Chairman Oleg Novachuk and nonexecutive director Vladimir Kim, who will respectively own 36.5% and 63.5% of KAZ upon completion, expected in the first half of 2021. The consortium now owns about 39.39% of KAZ and has received pledges in support of its bid from shareholders owning about 6.13% of the company as of Oct. 27.

The buyer plans to delist KAZ after closing the deal. "The consortium also believes that KAZ Minerals' decision to dedicate efforts to a capital intensive strategy focused on long term growth remains the optimal long term strategic path," which may be at odds with many mining investors' preferences, according to the release.

Advised by Citigroup and UBS, an independent committee of KAZ board members considers the acquisition terms fair and reasonable. The committee members intend to recommend that shareholders vote in favor of the deal at a meeting to be held in December 2020 or early January 2021.