The assets of the gold miner Polymetal were valued at $3.69 billion. The transaction itself will be carried out in Russian rubles with the help of companies that were not subject to sanctions.
The gold mining company Polymetal has entered into an agreement to sell its business in the Russian Federation to the structure of Mangazeya of Sergey Yanchukov. This was stated on the organization’s website.
Polymetal JSC is valued at $3.69 billion, including $2.21 billion in net debt. Before the deal is closed, Polymetal will pay investors dividends in the amount of $1.43 billion.
Mangazeya Plus JSC must pay cash consideration in the amount of $50 million at the time of closing the deal. All settlements will be carried out in rubles through companies that were not subject to sanctions.
The deal will enable the Company to focus on business in Kazakhstan. If approved by shareholders, it will restore the shareholder value of the Kazakhstani business, as well as eliminate risks and reduce the debt burden of the group’s assets in Kazakhstan, the report says.
Mangazeya is engaged in the extraction of precious metals in the Trans-Baikal Territory; in 2022, the company’s gold production reached 3.26 tons.
Polymetal CEO Vitaly Nesis said that the company is selling Russian assets without the possibility of buyback.