(Alliance News) - Gold miner Polymetal International PLC on Monday said its shares will continue to trade in London for now due to delays in its re-domiciliation, which it affirmed "is critical to preserve shareholder value".
Polymetal said its re-domiciliation will not occur before the week beginning July 31.
Polymetal is looking to re-domicile to the Astana International Financial Centre from Jersey. The plan was backed by shareholders in May.
The move is a "necessary and critical first step to preserve the group's existence in its current form and to unblock the ability to execute further corporate actions to restore shareholder value". A change of domicile will "remove the burden" of Russian counter-sanctions, Polymetal said.
Polymetal will then apply for a suspension of its London listing. Polymetal on Monday said it will send out a document "as soon as practicable" and then seek shareholder approval for a London de-listing.
"The board continues to be of the view that the re-domiciliation is critical to preserve shareholder value and must be implemented as a first step, as soon as possible, even absent the contemporaneous approval of shareholders for the London de-listing. The company confirms that any London de-listing will be subject to shareholder approval and will take effect no less than 20 business days following the passing of the relevant resolution by shareholders at a general meeting," Polymetal added.
After the Kremlin's full-scale invasion of Ukraine in February 2022, the gold and silver producer operating in Russia and Kazakhstan has been subject to both sanctions from western countries, and to countersanctions by Vladimir Putin's regime.
Polymetal has emphasised that only its Russian subsidiary is targeted by sanctions.
Earlier in July, Polymetal said its Chief Executive Officer Vitaly Nesis and Chief Financial Officer Maxim Nazimok resigned from executive positions at the company's Russian subsidiary, JSC Polymetal.
The company explained that management of Russian operations has been passed on to executives of its Russian arm.
The company said it is considering "all possible options available for divestment of JSC Polymetal and its subsidiaries," with any potential transaction being subject to governmental and regulatory approvals in all applicable jurisdictions, which includes Russia.
In May, the US Department of State had added JSC Polymetal to its specially designated nationals & blocked persons list on Friday, the gold miner explained.
Polymetal shares traded 1.6% lower at 201.80 pence each in London on Monday morning.
By Eric Cunha, Alliance News news editor
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.