PRESS: Russia’s Petropavlovsk, Amur Zoloto can delay share swap

MOSCOW, Jun 29 (PRIME) – A swap of a 30.3% stake in U.K.-registered Petropavlovsk Plc, which operates in Russia, for Amur Zoloto (Amur Gold) of tycoon Musa Bazhayev can be postponed, business daily Kommersant reported on Wednesday, citing a source in Petropavlovsk.

The source said that discussion whether to allow the board of directors authorize a new share issue in favor of external investors without a preemptive right of the existing owners was removed as “it became clear that it is not supported by the shareholders and there is no sense to put it to vote.”

Petropavlovsk was forced to restructure a U.S. $310.5 million debt in 2015, while holding Renova belonging to Viktor Vekselberg, was gradually accumulating its stake in the gold producer, now standing at 21.45%. Sources told Kommersant earlier that Petropavlovsk negotiated selling a stake in the company to Bazhayev to protect the gold maker from Renova’s influence.

An announcement by CEO Pavel Maslovsky in May that Petropavlovsk can buy Zoloto Kamchatki (Kamchatka Gold) from Renova was a surprise for industry representatives, Kommersant reported. But a consequent statement by Petropavlovsk implied that the Zoloto Kamchatki and the Amur Zoloto deals are not mutually exclusive.

End