Polymetal International has announced the sale of its Russian business for a staggering $3.69 billion. The company plans to shift its focus to operations in Kazakhstan.
Business Transition
The mining company revealed that JSC Polymetal will be acquired by JSC Mangazeya Plus, a subsidiary of Mangazeya Mining in Russia. This strategic move is set to bring in net after-tax cash proceeds of $300 million.
Strategic Reinvestment
Polymetal’s board is keen on utilizing the funds from the sale to support the development of the Ertis POX project in Kazakhstan. This initiative aims to enhance the company’s liquidity profile, emphasizing a forward-looking approach.
CEO’s Perspective
Vitaly Nesis, the Chief Executive Officer, highlighted the significance of this divestment as a means to reduce business risk, ensure stable cash flows, and explore new avenues for investment. The board has encouraged shareholders to vote in favor of the proposed resolution.
Expected Closure
Pending regulatory and shareholder approvals, the deal is slated to conclude by the end of March. This milestone marks a pivotal moment in Polymetal International’s strategic realignment.