FT reports that Glencore will back Kazakh entrepreneur in his purchase of 40% stake Eurasian Resources Group

The Financial Times reported Thursday that Glencore has proposed to support Kazakh entrepreneur Shakhmurat Mutalip in his $1.4 billion bid for a 40% stake in a mining company called Eurasian Resources Group. This was based on the knowledge of people involved with the discussions.

To help finance its bid, the London-listed miner proposed an upfront payment of $800 million in exchange for future shipments?of ferrochrome - a metal primarily used?in the production of steel.

Glencore and Eurasian Resources Group didn't immediately respond to our request for comment.

Mutalip’s?bid?is close to being finalised. It has beaten a rival bid by Shukhrat Ibragimov - the CEO of Eurasian Resources, and son of Alijan Ibragimov's cofounder.

Glencore tried to purchase the former FTSE100 company in '2011 for 12 billion pounds (15.99 billion dollars), according to a report from the media at that time.

The London-listed miner Mutalip 'are also active in discussions?over their bid to acquire his 70% stake in a 'another Kazakh mining company, Kazzinc. FT added that this could be worth around $3.5 billion.

(source: Reuters)