Polyus Gold, Kazakhstan’s KazakhGold abandon reverse takeover deal
October 26. RIA Novosti
Russia’s Polyus Gold and Kazakhstan’s KazakhGold have abandoned their reverse takeover deal suspended by the Kazakh government, KazakhGold said on Tuesday.
In June, Kazakhaltyn MMC JSC, a subsidiary of KazakhGold Group Limited, belonging to Polyus Gold, and Jenington International Inc., controlled by the Russian company, initiated a trial at the Royal Court of Justice in London against five members of the Asaubayev family, a former core owner of KazakhGold, in relation with a violation of several contract terms and fund embezzlement, which was not passed to the defendants ahead of the Kazakh asset merger.
In July, KazakhGold and Polyus Gold, which owns 50.1 percent in KazakhGold via its subsidiary Jenington International Inc, announced the takeover, under which KazakhGold would acquire its parent company Polyus Gold.
Kazakhstan then launched a process to terminate the reverse acquisition of Polyus Gold by KazakhGold Group. The Kazakh financial authorities suspended the accounts of KazakhGold subsidiary and core production unit Kazakhaltyn in August, as part of an investigation into alleged fraud by three members of the Polyus Gold board in Polyus Gold’s acquisition of a stake in KazakhGold.
KazakhGold said in a statement on Tuesday that it and Polyus Gold were looking for a solution to the problem but would fail to do so before October 29.
Polyus Gold is the leading gold producer in Russia and Kazakhstan and the only Russian company among the world’s largest gold producers. Polyus Gold’s operating mines and development projects are located in five Russia’s major gold mining regions, as well as in Kazakhstan, Romania and Kyrgyzstan.