Chinese Fosun International Ltd agreed to acquire a 20-25 percent stake in Russia’s largest gold producer Polyus in the amount of up to $2 billion, as per materials of the Russia-China Intergovernmental Commission.
The fact that Chinese and Russian companies are going to sign the agreement reporters learned from the first Deputy Prime Minister Igor Shuvalov.
Fosun controlled by Chinese billionaire Guo Huancano conducted an exclusive negotiating to buy a large minority stake in Polyus three sources told Reuters in the Fall of 2016.
This investment could be the first such deal with Russia for the Chinese group, which according to sources also discussed the purchase of a minority stake in Russian investment bank Renaissance Capital.
In December last year the Polyus Board of Directors approved the additional share issue of 28.6 million shares. In April the company repaid 63,082 million Treasury shares following the accession of a wholly controlled subsidiary OOO “Polyus-invest” bringing the total number of shares of the company (fell) to 127,545 million shares.
Gold mining company “Polyus” is planning to conduct a secondary share placement (SPO) in May-June of the current year simultaneously at the Moscow and London stock exchanges. Also in April the Moscow Exchange announced the transfer of “Polyus” shares to the first level of the securities list admitted for trading. One of the requirements of the Exchange for the securities of such level is that not less than 10% of the company’s shares are in free float. Free floating “Polyus” shares at the present time are 6.76%.