UPDATE: Polyus Gold’s $1 Billion London Sale
Russia’s largest gold miner Polyus Gold International is expected to go ahead with a share offering worth between $700 million – $1 billion in late April, Reuters reports citing sources “familiar with the matter.”
The stake sale is necessary if the company wants to proceed with a planned listing in London because it needs to increase its free float to 25%.
But inclusion in the prestigious FTSE-100 index – a boost to institutional demand for the stock – may be more difficult after the company announced last week that it won’t be moving its domicile to London, a requirement.
Polyus is 38%-owned by billionaire Mikhail Prokhorov (potash baron Suleiman Kerimov is also a major shareholder) who resigned as CEO last year to focus on a bid for the Russian presidency, an ultimately unsuccessful attempt (he got 8% of the vote).
Prokhorov’s political ambitions may have created problems for Polyus.
Prime minister and president-elect Vladimir Putin heads a government commission that has “sweeping authority over foreign investment in companies like Polyus Gold, whose gold reserves are considered strategic by the state,” Reuters reports.
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