Listed on AIX in Astana (Kazakhstan) Polymetal International plc has recently taken significant steps towards divesting its Russian business. On 19 February the company has entered into contracts for the divestment, aiming to preserve shareholder value and reposition its strategy. The proposed transaction involves selling JSC Polymetal and its subsidiaries, with an effective total consideration of approximately US$3.69 billion. Completion of the transaction is subject to various conditions, including shareholder approval.
The move aligns with Polymetal’s commitment to restore shareholder value. By swiftly and transparently exiting the Russian business, the company aims to comply with sanctions and create stability. The divestment will allow Polymetal to de-risk its operations, generate stable cash flows, and explore new investment opportunities.
The transaction will focus Polymetal’s efforts on its operations in Kazakhstan. If approved by shareholders, it will enable appropriate valuation of the company’s Kazakhstan assets and contribute to de-risking and de-leveraging the group’s operations in Kazakhstan. Notably, the US Department of the Treasury’s Office of Foreign Asset Control (OFAC) confirmed that non-US persons participating in or facilitating the transaction would not face sanctions.
The divestment will occur through the sale of 100% of the share capital of JSC Polymetal (Polymetal Russia) to JSC Mangazeya Plus. With this strategic move, Polymetal aims to enhance its focus, streamline operations, and create value for its stakeholders.
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