Kyrgyzstan votes against Centerra's Thompson Creek takeover

Thu Jul 7, 2016 2:10pm EDT
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BISHKEK, July 7 (Reuters) - Kyrgyzstan's state gold company Kyrgyzaltyn has voted against a planned $1.1 billion takeover of Thompson Creek Metals by Canadian miner Centerra Gold .

Kyrgyzaltyn, which has a 33 percent stake in Centerra, said on Thursday it had not been informed about the planned deal in advance and opposed it because the move would dilute Kyrgyzaltyn's holdings.

"Unfortunately, the management of Centerra Gold has recently been including in the (board) agenda issues important to all shareholders on an unreasonably short notice with no opportunity for preliminary research," it said in a statement.

Kyrgyzaltyn said it would look at the deal in more detail once it received the required information from Centerra. The Kyrgyz company cannot block the deal.

Centerra, whose main asset is Kyrgyz gold mine Kumtor, agreed on Tuesday to buy U.S.-based Thompson Creek Metals as part of plans to reduce its exposure to Kyrgyzstan, which has been trying to get a bigger share of profits from the Kumtor mine.

Centerra has long been locked in a bitter dispute with the Central Asian state over Kumtor profit sharing and took it to international arbitration in May. (Reporting by Olga Dzyubenko; Writing by Olzhas Auyezov. Editing by Jane Merriman)