LSE-listed miner Kazakhmys has agreed to buy a 7,66% stake in fellow Kazakh miner Eurasian Natural Resources (ENRC) from the government of Kazakhstan, in exchange for 15% of Kazakhmys, the company said on Tuesday.

The exchange ratio will be 1 Kazakhmys share for 1,23 ENRC shares, and the deal would bring Kazakhmys' holding in ENRC to 22,24%, from 14,6%.

The acquisition will make Kazakhmys the largest single shareholder in ENRC, the firm said in an emailed statement.

“The board of Kazakhmys believes this acquisition will significantly enhance the strategic value of its holding in ENRC,” the company said.

However, it had no intention of making a full offer for ENRC at the current time.

The announcement follows a statement last month by ENRC, that it had decided not to make a formal offer for Kazakhmys at the moment.

Eurasian first said in March that one of the possibilities it was considering was a merger with Kazakhmys, after which Kazakhmys applied for and received a ruling from the UK Takeover Panel, instructing ENRC to announce its intention to offer for Kazakhmys by May 16, or walk away for six months.

Kazakhmys has copper mining, smelting and refining operations in the Zhezkazgan, Balkhash and East regions of Kazakhstan, precious metals mines in Tajikistan and Kyrgyzstan, and copper processing and manufacturing units in Germany.

The company said in April that it had held preliminary talks with the government of Kazakhstan, including on the possibility of the government taking a minority stake in the company in exchange for natural resource assets in the country.

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