Today, shares of gold mining company Polyus Gold will no longer be traded on the London Stock Exchange and it will be private. As I have found out of Forbes, the major shareholder of "Nafta Moscow" Suleiman Kerimov was unable to agree with the Chinese investment funds CIC and CITIC and China Gold Corporation to sell its stake in Kerimov Polyus Gold, which owns 95% of "Polyus Gold". Formally, the owner of Polyus Gold by Wandle Holdings and its "daughter" is a son of Suleiman Kerimov Side.
Familiar Kerimov Sr. and close to the "Nafta Moscow" a financier told that Suleiman Kerimov held talks with Chinese investors since the beginning of the year. CITIC, the CIC (now owns about 5% of Polyus Gold), and China Gold were willing to pay $ 1-1.5 billion in the overall assessment of the company at $ 6 billion, according to a familiar Kerimov. That is, the Chinese company could get a blocking stake.
"Next regarded leveraged buy-out Polyus Gold c London Stock Exchange and the possible reallocation on the stock exchange in Hong Kong" - continues the source Forbes. According to him, the deal fell through due to the continuing decline in the price of gold. In this week nachel value of an ounce reached the level of $ 1052 per ounce,which is the lowest since February 2010.
According to a source in the "Nafta", shareholders of CITIC did get an offer to sell shares in Polyus Gold, but now the company is not for sale.
"The decision to buy out minority shareholders and delist nothing to do with the proposals in London. Listing in Hong Kong are not considered ", - says a source in the" Nafta ".
Representative Karimov and Chinese companies declined to comment.
Most likely, the seller and pokupitel not agree on the price because of the different forecasts for commodity prices, argue partner RMG Partners Arseny Dabbah and managing partner of the "FMF Capital" Dmitry Pyle. "Assessment of the investor" pole "at market multiples can not be optimistic as much as the current shareholders evaluate her on future cash flow," - says Pyle.
A source close to Kerimov said that also heard that Karimov had discussed two options for raising finance: either sell the share of Chinese or Russian investors, or increasing the debt burden of the company for attreatment for the needs of Kerimov. Close to the "Nafta" a source claims that debt load the company will increase only for purchases of new assets in the gold sector. The "Pole" low debt burden in the first half of the year - 0.3 Net debt / EBITDA, and large redemption will come only in 2019 ($ 718 million), despite the fact that the company has accumulated about $ 1.3 billion.