Polyus Gold to close reverse takeover of KazakhGold in July
May 16. RIA Novosti. KALUGA
Russia’s top gold miner Polyus Gold will close a long delayed reverse takeover by Kazakhstan’s KazakhGold in July, Mikhail Prokhorov, owner of Onexim group, one of Polyus Gold’s beneficiaries, said on Monday.
Under the deal, the largest shareholders will buy KazakhGold’s shares first followed by minority shareholders who will buy shares within eight weeks.
KazakhGold will become the parent company of Polyus Gold group and will be renamed Polyus International. The company will then be floated on the London Stock Exchange.
Polyus Gold bought 50.1 percent of KazakhGold from the Assaubayev family for $269 million in 2009. It later increased its stake to 65 percent to carry out a reverse takeover, under which KazakhGold was supposed to acquire Polyus Gold. The merged company was expected to become one the world’s leading gold mining companies traded on the LSE.
Last June Kazakhaltyn and Jenington International Inc., controlled by Polyus, initiated a trial at the Royal Court of Justice in London against the Assaubayevs saying they had violated some contract terms and embezzled company funds.
In response, the Kazakh authorities launched a process aimed at terminating the reverse acquisition of Polyus Gold by KazakhGold.
In November, Polyus Gold agreed a $509 million deal to sell KazakhGold’s production assets to the Assaubayevs, settling the dispute between the two sides. However, in March the deal was put on hold as the Assaubayevs failed to raise enough funds to finance the first stage of the transaction.
In April, Polyus Gold and the Assaubayevs revised terms of the deal altering its parameters, but leaving the total sum unchanged.