Blocking “Pole” you can buy investors from China – Economy News

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Photos: macd.ru

Polyus Gold International Ltd (PGIL), owned by the son of Saeed Suleiman Kerimov and controlling Russia’s largest gold miner, JSC “Polyus”, is negotiating the sale of the blocking stake of “Poles” of the Chinese company Fosun Group for $ 2 billion, reports “Kommersant”.

the Sale of shares of PJSC would reduce the debt PGIL to Sberbank, but the deal requires the approval of the government. This deal does not block access to the joint company “the Pole” and “Rostec” “SL Gold” to the auction for Sukhoy Log (130 million ounces of gold) is the proportion of Fosun Group in the JV will amount to only 12.5%, according to “Kommersant”.

According to sources, PGIL is negotiating the sale of 25% plus 1 action “the Pole” Chinese Fosun Group. Negotiations are at an advanced stage, the deal could take place in late 2016 – early 2017, said one source. If the deal goes through, Fosun by blocking get right of veto on major deals, one place in top management, two from the Board of Directors, and the right to nominate one independent Director. Two other sources say that the exact terms of the deal no, and the negotiations with Fosun being “long and on a wide range of issues”: the group has already acquired Eurobonds PGIL and is considering participation in the SPO of the company.

According to sources, Polyus estimated the transaction in $ 8.5 to 9 billion, that is excluding the cost of Treasury shares (34,1%), which must be repaid. Yesterday, the company’s capitalization on the Moscow stock exchange amounted to 846 billion, or $ 13,28 billion, net Treasury package – $ 8,75 billion Thus, the cost of blocking may reach $ 2 billion, Kommersant Sources say that Polyus intends to sell Fosun “amount of securities which will represent 25% plus 1 share after repayment of treasuries”. What will be the result, the package itself PGIL, not specified. Formally, after the redemption of Treasury shares in PGIL “Pole” is expected to increase to 82.2% to reach after the sale of the blocking stake of about 57%.

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Almost the entire package PGIL pledged under Sberbank loan of $ 6 billion, which structure said Kerimov was attracted to refinance the debt to VTB for $ 5.5 billion, browsegate at the end of 2015 for the consolidation and delisting from the LSE of shares in the Jersey company.

In March, Polyus held a buyback, buying PGIL 31,59% of its shares for $ 3.4 billion and later of 2.35%. According to a source””, close to Sberbank, the loan continues to be laid 90% of PGIL, and for any transactions with the shares of Polyus, the consent of the Bank, which has not been accessed.

if the parties come to an agreement, the deal will require the approval of the government Commission on foreign investment: Polyus develops deposits with gold reserves over 50 tonnes, that is, the subsoil plots of Federal significance.