RE: Paper shares - a possible future benefit5 Aug 2022 15:07
NOT RELEVANT TO EVR.
POG DIED
A Russian goldminer has agreed to sell off assets after going into administration last month. The deal confirms that shareholders in Petropavlovsk will be wiped out after a months-long crisis sparked by western sanctions over Moscow's invasion of Ukraine. The company, which was once the biggest goldminer listed on the London stock market, proposes to sell its subsidiaries and most other assets to UMMC-Invest, a Russian metals producer, for $600 million. Administrators at Opus Business Advisory said the sale was "conditional on a number of [undisclosed] matters", but they hoped to complete the process by the end of September. In a separate statement about a High Court hearing, the administrators said they expected that there would be enough money "to pay creditors in full without any return to shareholders". Petropavlovsk was one of Russia's biggest gold producers and its rapid growth in value almost secured it a place in the FTSE 100. It folded in July after sanctions on Gazprombank, its main lender and the sole buyer and seller of its gold, left it unable to repay an immediate call-in of loans said to have been $200 million. Petropavlovsk, which used to be called Peter Hambro Mining, is a highprofile corporate casualty of the Ukraine war. By the time its shares were suspended last month, its stock market value was £50million. Its biggest shareholder is Konstantin Strukov, 63, a Russian businessman, with 29 per cent. As well as have having mines in Russia's far east, one of the company's prized assets is its ownership of one of only two factories in the country that extract gold and metals from ore, a difficult process.
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