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Kazakhstan's Polymetal to sell its business in Russia

Kazakhstan Materials 20 February 2024 15:31 (UTC +04:00)
Madina Usmanova
Madina Usmanova
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ASTANA, Kazakhstan, February 20. Kazakhstan's Polymetal International plc announces the conclusion of agreements for the sale of Russian business, Trend reports.

According to the company, the transaction is subject to a number of conditions, including approval by the shareholders' meeting.

The cost of selling the business in Russia will be $3.69 billion. It will be implemented through the sale of 100 percent of the shares of Polymetal JSC (the holding company of the group’s Russian assets) to Mangazeya Plus JSC.

As the company noted, the deal will enable it to focus on business in Kazakhstan. If approved by shareholders, it will restore shareholder value in the Kazakhstan business, eliminate risks, and reduce the debt burden of the group's assets in Kazakhstan.

On February 16, 2024, the US Department of the Treasury's Office of Foreign Assets Control (OFAC) certified to the company that no penalties would be imposed against non-US residents, including Polymetal, for completing or participating in the transaction.

The transaction is likely to be finalized by the end of March this year, subject to shareholder approval.

Note that Polymetal is a leader in the extraction of precious metals. Included in the world's top ten gold mining firms. Polymetal shares are traded on both the Astana International Financial Centre - Astana International Exchange (Kazakhstan) and the Moscow Stock Exchange. It has 10 operational gold and silver deposits, as well as a high-quality portfolio of development prospects.

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