(SRI) - Kazakhmys Chairman Vladimir Kim sold an 11% stake in the company, nearly a third of his stake, to the Kazakh state-owned holding and investment company Samruk-Kazyna for about $1.3 billion, Kazakhmys said in a statement.
"The transaction enables Mr Kim to diversify his investment portfolio while retaining a significant long-term shareholding in Kazakhmys," the company said.
Kim will remain the single largest shareholder in Kazakhmys, holding about 28% of the company. The Kazakh government, through Samruk-Kazyna, will raise its share in the copper miner to 26%, once the transaction is finalized by the end of the month.
Analysts expressed concerns over the increasing role the Kazakh government will play in the company following the transaction.
"Mr Kim selling shares is a good thing, but selling them to the government is not," the Financial Times quoted one institutional investor as saying.
"While it is unlikely that they [the Kazakh government]will have any immediate affect on the management and direction of the company there may well be a call for more social funding," Evolution Securities analyst Louise Collinge said in a note.
Kim's move could be a precursor to Kazakhmys' preparation for a possible secondary listing next year on the Hong Kong Stock Exchange, according to analysts.
In September, the Financial Times reported Kazakhmys was considering secondary listing in Hong Kong in a effort to raise its profile in China, the destination for 60% of its copper.