Member Info for JenniferE

The more I think about this deal the more I dislike it and think it unnecessary. MOEX is open now and Russian share have fallen about 30% since the start of the year, I'd expect property and especially warehousing to be down less. The Ruble is now down about 10% but our dollar debt is hedged so not a huge impact. We should still have a positive net asset value with rents being paid and when the war ends things are likely to quickly improve. It seems very unlikely that major new sanctions will be introduced that would impact us so I'm not seeing the benefit from transferring ownership.

It seems to me preference share dividends need to be suspended until money can be transferred out of Russia and the company is in a stable position but this is the case no matter who controls the company.

Clearly the Russian management are going to have a lot of work to do especially as foreign tenants may be moving out and they will need to find replacements, they will also need to carefully manage the debt considering the high interests in Russia now. I'd suggest keeping the current listing, returning from suspension as soon possible and pay the Russian management a bonus of a few million if they see the company through to a position where preference dividends resume!

Shareholders are not getting "Nominal value", that is what we are paying the Russian management for the option to sell them the assets!
In any case it looks now as if many of the sanctions will be wound back on a peace deal so I think it's better to wait rather than rushing in transferring the assets! As things stand I'll be voting against the delisting!

What is happening here is that there is a change of management and control of the company from the current owners to the Russian management team. The Russian manages are being given the Cyprus holding company (RRHCL) for free but before the transfer occurs RRHCL which holds all the assets and debt is issuing £678m of preference shares to Raven Property Group which we have shares in.
As I have said earlier we have paid the Nominal Sum for the option to sell, it not what's being paid to us! Our shares in Raven Property Group are totally unaffected by this transaction.

Raven property group(RPG) which we hold shares in is the 100% owner of RRHCL which holds all the Russian property and related debt. I had been suspicious that there would be corporate level debt but I'm now thinking there isn't and that all the debt is passing over in the transaction.
The transaction is the transfer of RRHCL to the Russian management but RPG will receive £678m of preference shares in RRHCL.
After the transfer RPG will have no assets or debt other than the preference shares and the loans to RRHCL.

On face value it doesn't seem a bad deal as long as the Russian management can be trusted to be honest and honourable.

The amount of preference shares and the dividend rate seems high and I'm not sure how this is going to be paid. The RNS states the EBITDA was £108m, At the half year report the debt was £673m at about 6.4%, that would be interest payments of £43m. The payment of dividends on the £678m of preference shares would be £67.8m, add in interest of the debt of about £4.4m and that another £72.2m. Add this in the bank interest and that is payments of £115.2m out of income of £108m. To make matters worse, on the 31 December 2021 there were 100 Rouble to the pound, now there are 142. This reduces the quoted EBITDA to £76m and there is still tax to be deducted!

It's Raven Property group that has paid the nominal sum for he put option, not the other way round! It is an option to sell the assets of the company for £678m of preference shares in the management company. Short term at least there will be no offer for the delisted shares!

Whilst I'd have expected most of the debt to be secured against property I find the payment of £678m in preference shares overly generous in the debt is going with the property. They state net assets at 31 dec 21 were £437m, add in the £252 of preference shares and that's £691m but the rouble has fallen 40% in value since then. Taking the £50m of intercompany loans into consideration as well, they are paying a premium to December valuation, that doesn't make sense to me!

At the half year report the gross debt was £673m and yet there is no mention of where this debt has gone in this RNS! If this debt is staying in the holding company then the £678m of preference shares will just cover the debt with nothing left for ordinary shareholders and only pence in the pound for pref shareholders. I'd have expected a split in the debt with mortgage debt linked to property and some debt at the corporate level. We need to know what the expected return would be assuming all obligations are met, I'm not going to vote for something that guarantees a 100% loss!

I notice from the news today China has said they don't agree with sanctions and don't want to be impacted by them. Wouldn't it be an option for Polymetal to get a listing in Hong Kong, most brokers allow trading in Hong Kong shares and the shares would be considerably higher being listed in a more friendly country!

If we were to be impacted by sanctions and suspended it would be worth splitting the company in two, the Kazakhstan assets would likely be worth 4-6 pound per share and we would still hold shares in the Russian mines for when sanctions were lifted! Unlike Evraz where the businesses are interconnected Polymetal would be easy to split!

According to the latest accounts, adjusted EBTDA was $1464m and adjusted EBTDA from Kazakhstan was $630m. That is 43% not 20%!

Those relying on slide 44 of the capital markets day report for the dividend payment are being misled as there is an error is the slide. It was clearly slated in the presentation that the final dividend would be 8p followed by a 8p interim dividend for 2022. Someone did ask about this in the Q&A and it was stated clearly 8p final followed by 8p interim.

You have to give these guys credit where it's due, they are truly skilled at the destruction of shareholder value!

It's a pity we have forward sold the gas we are not producing at 40p a therm! I'm just hoping the forward sales are covered by other production and we are not having to buy gas at 174p per therm! On the positive side futures prices are looking strong well into next year so Tolmount should be throwing out cash when it finally comes on line!

I was disappointed at the sale price, in the last accounts the pubs were valued at £248m, so that's a 10% discount to the already heavily reduced NAV and I'd expected pubs to bounce back strongly this year.

Stevo12,
The allocation was based on the number of bonds you hold, not the number you applied for. It comes out at roughly 0.32 additional share per £1 bond.

Tarrier,
I was charged 8.2749p for each of the additional shares. I think your 80.6p per £1 nominal is an error, I've received 61.6p per £1 in all my accounts.

I've received cash in Eqi, 61.6p per £1 nominal. This includes a deduction for additional shares.

The additional shares will be paid for by a deduction from the cash element.

Wasp, I've received 1.9096 per £1 in both my account with ii and eqi. It is made up of 1.59059 per £1 creditor shares and 0.314 per £1 additional shares.

The date was a give away, 31st March!