Precious metals producer Polymetal International said on Monday it had agreed to sell its Russian assets in a $3.69 billion deal that takes into account the debt of the Russian business.
Polymetal has been seeking to sell its Russian assets, which were put under U.S. sanctions in 2023 in response to Moscow sending troops into Ukraine in February 2022.
In August 2023, the company re-domiciled to Kazakhstan from Jersey and listed on the Central Asian nation’s Astana International Exchange (AIX), as part of efforts to facilitate a sale.
The agreed deal would see Polymetal International sell 100% of its Russian business to Mangazeya Plus, part of businessman Sergey Yanchukov’s Mangazeya Mining, for a total consideration of about $3.69 billion, of which $2.21 billion is the Russian business’ net debt, Polymetal International said in a statement.
The agreed amount includes cash of $1.48 billion, $1.43 billion of which is in dividends from the Russian business, to be paid prior to the sale’s completion.
An additional $50 million will be paid to the company upon the deal’s completion, the statement said.
Polymetal International, which will remain Kazakhstan’s second-largest gold producer after the transaction, said it intends to use $1.15 billion of the dividends received to repay intra-group debt.
The remaining approximately $280 million will be retained by the company for internal corporate purposes, it said.
All payments will be made in Russian roubles through non-sanctioned financial institutions. The deal requires shareholder approval.
Source: Reuters.com