Chinese Fosun to acquire 20-25% in Polyus for $2 bln

MOSCOW, Apr 13 (PRIME) -- Chinese investment company Fosun intends to acquire 20-25% in Russian gold producer Polyus for U.S. $2 billion, as seen by PRIME in materials of the Russian-Chinese investment commission on Thursday.

Fosun will represent a consortium of Chinese companies in a deal with Polyus’s parent company Polyus Gold.

“The parties have come to an agreement on the main transaction terms, they are elaborating the project legislatively and will make a public announcement afterwards,” is indicated as the current project status in the document.

After Polyus had won a tender for the Sukhoi Log, the biggest gold mine in Russia and the world, earlier this year, its gold reserves increased considerably.

“The company’s proven and inferred reserves amount to 3,600 tonnes, which is comparable to China’s overall gold reserves. The deal envisages that the Chinese party will get the right to sell the company’s output proportionally to its shareholding, which may reach 25%. This may substantially boost China’s gold reserves to meet demand of the country’s market,” the document read.

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