Polymetal International sells Russian assets for $3.7 billion

Precious metals producer Polymetal International has agreed to sell its Russian assets to Mangazeya Plus in a deal worth $3.69 billion. This was reported by Reuters, according to UNN.

Details

Polymetal International has been trying to sell its Russian assets, which were subject to US sanctions in 2023 in response to Russia's war against Ukraine.

In August 2023, the company changed its registration from Jersey to Kazakhstan and was listed on the Astana International Exchange to facilitate the sale.

According to the agreement, Polymetal International is selling its Russian business to Mangazeya Plus, a part of Mangazeya Mining owned by Russian businessman Sergey Yanchukov. 2.21 billion out of the total amount of $3.69 billion is the net debt of Polymetal's Russian division,

The agreed amount includes cash of USD 1.48 billion, of which USD 1.43 billion is a dividend from the Russian business to be paid before the sale is completed.

An additional $50 million will be paid to the company upon completion of the transaction.

Addendum

Polymetal International, which will remain the second largest gold producer in Kazakhstan after the deal, said it intends to use the $1.15 billion in dividends to repay intra-group debt.

The remaining approximately $280 million will be retained by the company for internal corporate purposes.

All payments will be made in Russian rubles through non-sanctioned financial institutions. The transaction is subject to shareholder approval.

Recall

Since the beginning of the full-scale war , the center of Russian gold trade has moved from London to Dubai, and later it began to shift to the bullion center in Hong Kong.