Polymetal will sell Russian business to Mangazeya structures – Kommersant

Polymetal concluded agreement on the sale of its Russian business (JSC Polymetal) to the Mangazeya Plus company (part of the Mangazeya group of companies owned by Sergei Yanchukov). The assets being sold are valued at $3.69 billion, including $2.21 of net debt.

As part of the agreement, Polymetal will pay Polymetal dividends in the amount of $1.429 million before closing the deal. Of this, $278 million will be used for general corporate purposes, $1.151 million will be used to pay off intra-group debt. The cash consideration paid by the buyer will be $50 million.

The corresponding decision was made by the Board of Directors (BoD) of Polymetal International plc. The Board of Directors believes that “the current structure of the group continues to expose the company to an unacceptable level of risk associated with operating activities in the Russian Federation and threatens the complete destruction of Polymetal’s shareholder value.”

It is clarified that the closing of the transaction is subject to a number of conditions, including obtaining regulatory approval and shareholder approval. Polymetal expects the deal to be closed by the end of March.

They decided to sell the assets after the US Treasury Department included the Russian structure of Polymetal on the sanctions list on May 19, 2023. In August of the same year, the company completed its delisting on the London Stock Exchange. This week ICT Group, Polymetal’s largest shareholder, sold its share to an investment fund from Oman.

Polymetal is one of the ten largest gold producers in the world. In 2023, the company’s revenue increased by 14%, to $2.13 billion.

Read more about the company’s business in the Kommersant article. “Deceptive Prospects”.

Laura Keffer