Photo: Yuri Smityuk / TASS
Polyus agreed to sell 10% of Chinese investors headed by Fosun. The largest gold miner Russia had guaranteed investors generous dividends in the years 2017-2021
The largest gold producer in Russia, Polyus, Kerimov said (which owns 91.7%) have agreed to sell to a consortium of Chinese investors, Fosun Group 10% of its shares at a price of $70,6 per share. This was announced by the company on the London stock exchange. Additionally, the Chinese investor will receive an option for another 5%, he will be able to realize until the end of may 2018. But this option involves a premium to the price of the transaction, the additional shares the investor can buy at a price of $77,66 per paper (only $488 million).
The company was priced for initial transaction of $9 billion, to deal with the implementation of the option of $9.9 billion. the Completion of the sale of 10% of the shares “the Pole” is expected before the end of 2017 after receiving governmental permission. A consortium of Chinese investors has already received preliminary approval from the authorities, the report said. In addition, the final cost of a 10% share will be adjusted for the amount of dividends paid in the period between signing of the contract of sale and closing the deal.
The agreement with Fosun also requires “pole” to pay high dividends. Now the minimum level of dividend payments “Pole” in the years 2017-2019 will be at least $550 million per year, in 2020-2021 years — at least $650 million They should be paid once in six months. After 2021, the company will be able to follow its dividend policy, which assumes payment of 30% EBITDA, if the ratio of net debt to EBITDA below 2.5 x.
The last time Polyus was paying dividends by the end of 2014 — $184,5 million At the end of 2014, the company’s shareholders also received specailizing in the amount of $500 million.
In addition, Fosun and Polyus agreed to increase the number of seats in the Board of Directors from 9 to 11 and include three independent non-Executive Directors. Fosun received the right to two seats on the Council. Now in Board of Directors three independent Directors, children of Suleiman Kerimov said and Gulnara Karimova, the General Director “Poles” Pavel Grachev, senior Vice President of operations, Vladimir Polin, managing Director of “Nafta Moscow” Anastasia Galochkina, senior Vice President, Finance and strategy Mikhail Stiskin.
The “Pole” should appear another investor in the near future: at the St. Petersburg international economic forum RDIF may announce the deal with the company reported to RBC.
“We will invest a large Chinese Fund, will announce on forum. This is a very large Russian mining company”, — told reporters the other day the CEO of RDIF Kirill Dmitriev, refusing to name the co-investor and transaction details. “Separately, comes RDIF separately — a private Chinese group,” he added.
That “pole” in talks with Fosun, became known in November 2016. Then “Kommersant” wrote that Chinese investors want to obtain a blocking stake of “Pole” for about $2 billion in the Proximity of the transaction was confirmed in April, first Deputy Prime Minister Igor Shuvalov: “as far As I know, Fosun and “pole” even today had to sign the relevant documents”, — he said to journalists after a meeting of the Russian-Chinese intergovernmental Commission. But in may, “Kommersant” reported that Chinese investors are discussing the purchase of 10% of Polyus on the basis of the company’s valuation of $8.9 billion and the number of the option for another 5% during the year from the moment of signing. Up to 10% of the shares, according to the newspaper, Polyus plans to sell within the SPO, to attract anchor investors.