LONDON, June 30 (Reuters) - Russian gold miner Petropavlovsk
appointed four new directors and asked British
regulators to look into possible breach of the takeover code by
a major shareholder, as it battles to keep control of the
company.
Shares in the company, which have more than doubled this
year, sank 12% by 1200 GMT.
The company's CEO, CFO and three other board members were
voted out at an AGM by top shareholders Uzhuralzoloto Group of
Companies (UGC), Everest Alliance, Slevin Ltd and Fortiana
Holdings after the four agreed to reappointment them in May.
The four shareholders controlled 39% of Petropavlovsk at the
time of voting.
"It has become clear to us that they were trying behind the
back of other shareholders to take control of the company," said
CEO and executive director Alya Samokhvalova, referring to the
voting down of board members.
The expanded interim board, appointed within days, will
ensure continuity and prevent disruptions to operations in the
lead up to a second AGM which will be held within three months,
she said.
"Hopefully (at the AGM) will be an informed decision by all
shareholders so that they won't see their company taken for
peanuts after they were waiting for so many years for the
success," said Samokhvalova.
Petropavlovsk asked Britain's Takeover Panel to investigate
whether UGC breached a rule requiring investors to make a
mandatory offer to the other shareholders.
UGC denied any wrongdoing in a statement.
Petropavlovsk founder Peter Hambro was reinstated as
chairman after he was ousted in 2017. Another boardroom
reshuffle occurred in 2018.
Analysts at Peel Hunt said in a note the removal of the four
directors was aimed at controlling Petropavlovsk's Russian
processing hub, the only one in the country that can processes
refractory ore and has spare capacity.
Many gold deposits in Russia mine refractory ore, from which
it is hard to extract gold using traditional methods.
(Rporting by Anna Rzhevkina in Gydnia and Zandi Shabalala in
London; editing by David Evans)
