Investors who sell shares together with Abramovič together own about 40 percent of the company. Fortiana has offered them three pounds per share, and is planning to make the same offer to the remaining shareholders. This is 3.8 percent higher than the price of these shares on Thursday after the end of trading on the London Stock Exchange.
Gold, considered a commodity that can preserve values in uncertain times, has recently become significantly more expensive due to the effects of the coronavirus crisis. One troy ounce (oz; 31.1 grams) costs almost $ 2,000 and is close to the record.
Highland Gold operates several mines in Russia and this year wants to extract 300,000 troy ounces of gold, which is about 9.3 tons. The company is owned by businessman Vladislav Sviblov, who is also the majority shareholder and head of the mining company Ozernaja. It mines zinc and lead in eastern Siberia.
Kellner’s PPF got rid of part of the shares of the Russian gold miner for 5.8 billion |
Gold for gold
About a month ago, Fortiana sold a 5 percent stake in another Russian gold miner, Petropavlovsk, which is struggling with disagreements with the management team. The purpose of the transaction was to obtain cash for other investments.
Shares of Highland Gold Mining have strengthened by about 47 percent since the beginning of the year. Today, their price has risen slightly, hovering just under three pounds on the London Stock Exchange, close to the level paid by the new owner.
Advisors from the American bank Citigroup advised the company’s shareholders to accept Fortiana’s offer. The buyer plans to finance the transaction with a loan from VTB, a bank controlled by the Russian state.
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