YONG KEU CHA, the chief executive of the London-listed miner Kazakhmys, has sold shares in the company worth nearly £500 million — believed to be the largest sale by a director.

The South Korean-born businessman is stepping down as head of Kazakhmys at the end of the year and is taking advantage of a strong share price to liquidate some of his holding now. He sold 2 per cent of Kazakhmys’s stock, worth about £102 million, into the London market yesterday, and will sell a further 2 per cent to investors based in Kazakhstan when the company lists in its domestic market later this year.

The chief executive has sold a further 7.1 per cent, worth £383 million, to Vladimir Kim, Kazakhmys’s chairman, who is to become chief executive. His remaining 4.5 per cent will not be sold until at least the end of the year, under an agreement with Kazakhmys’s bankers.

Kazakhmys last night insisted that the sale was good for investors because it increased the FTSE 100 company’s free float to 33 per cent. However, the size of the director’s sale surprised the City. The £484 million of stock sold to the market and to Mr Kim is thought to be the biggest sale by a director in London. The shares rose 18p to £11.55.

BACKGROUND

• Former Kazakhmys boss gets £250m

• Higher costs hit Kazakhmys

• Kazakhmys's departing chief sells shares for nearly £500m

• Kazakhmys hit by resignation

Kazakhmys is not for the faint-hearted

Far from being the ideal widows and orphans stock, it is developing in ways that calm the nerves.

Related Internet Links

• Kazakhmys company information

• Kazakhmys share price chart

• Kazakhmys forecast

In another transaction declared yesterday, Mr Kim gave 2.5 per cent of Kazakhmys stock, worth £135 million, to Vladimir Ni, its chairman in Kazakhstan. This gift was, the group said, a reward for Mr Ni’s “longstanding business relationship with Mr Kim”.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive