(Alliance News) - Petropavlovsk PLC on Monday said it is not engaged in merger talks with its largest shareholder & fellow Russian gold miner, Uzhuralzoloto Group of Cos.
Shares in Petropavlovsk were trading 4.4% higher at 25.99 pence each on Monday morning in London.
The FTSE 250-listed company noted recent press speculation, stating that while it maintains an active dialogue with all its shareholders, it is not currently engaged in any transaction discussions with UGC.
In February, Petropavlovsk said that privately-owned UGC had become its largest shareholder, with a 22% stake in ordinary share capital and a further 5.9% through financial instruments.
On Sunday, the Telegraph newspaper reported that London-listed Petropavlovsk is looking into a potential merger with UGC, adding that Petropavlovsk Chief Executive Pavel Maslovskiy stated that discussions between the two mining giants are currently at an early stage, but the deal could "definitely happen".
By Ife Taiwo; ifetaiwo@alliancenews.com
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