Polymetal looks to sell-up and quit Russia over nationalisation fears
Anglo-Russian miner Polymetal has today said it will hold a vote imminently on a £2.8bn purchase offer that would see it exit its Russia business.
The firm said in a statement on its website today that the current structure of the company “continues to expose it to unacceptable levels of risk associated with its Russian operations,” namely, the fear it could fall into the hands of the Russian government via nationalisation.
The group, which was looking at delisting last year, holds eight gold and silver mines in Russia, and two in Kazakhstan.
The firm re-domiciled to Kazakhstan from Jersey in August and listed on the Central Asian nation’s Astana International Exchange (AIX).
It also fears the longer it remains within the Russian domestic market, the more likely it is to come under the expanding umbrella of the Western sanctions against the country.
On March 7th, shareholders will vote on the proposed $3.6bn (£2.8bn) divestment to Mangazeya Mining, a British Virgin Islands-based mining exploration firm based primarily in Siberia.
“The Board, the Special Committee and the management team of the Group are set to deliver on our commitment to restore shareholder value and re-set Polymetal’s strategy by selling the Russian business of the Group,” said Vitaly Nesis, Group chief executive.
“A quick, transparent, and sanctions-compliant exit under the terms of the proposed Transaction serves the interests of all stakeholders and the completion of the divestment will allow the Group to de-risk the Company’s business, deliver stable cash flows and pursue new investment opportunities.”
The sale would square the circle on the firm’s ambitions to depart Russia, which have been in the works for around half a year.