Russia's Polymetal asks shareholders to approve Kazakhstan move

Polymetal International PK

10/05/2023 14:00

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coverage of Russian military operations in Ukraine.
    

  
       MOSCOW, May 10 (Reuters) - Russia's Polymetal  POLYP.L 
has asked shareholders to approve re-domiciling the gold and
silver producer from Jersey to Kazakhstan, in a move that will
allow it to advance plans to separate its Russian and Kazakh
businesses next year.
    Polymetal, which has its main listing on the London Stock
Exchange, plans to separate the business units as a response to
Western sanctions on Russia after it sent tens of thousands of
troops into Ukraine last February.
    Polymetal has not itself been targeted by sanctions, but
restrictions - including Russia's counter-sanctions against
Western countries - have disrupted some of its operations and
caused it to delay some projects.
    Re-domiciling is a "necessary and critical first step to
preserve Polymetal's business continuity and restore shareholder
value in the current environment," it said in a statement.
    As a result of the move, Polymetal will be forced to suspend
trading and possibly cancel its LSE listing as its shares "will
not be able to meet the basic requirements to maintain trading
in London," CEO Vitaly Nesis said on Wednesday.
    Polymetal said it cannot guarantee the request to delist
will be approved, so its shares in London may remain "suspended"
over the long-term.
    After re-domiciling Polymetal's primary listing will shift
to the Astana International Exchange (AIX).
    Polymetal's board said it had also considered Dubai, Abu
Dhabi and Hong Kong as possible destinations.
    A shareholder vote on the proposals will be held on May 30,
and Polymetal expects to complete the re-domiciling on July 17,
when if the plan is approved, it will also apply to suspend
trading on the LSE.
    After re-domiciling, Polymetal will consult shareholders on
splitting its Russian and Kazakh businesses into separate
divisions, which could go ahead in the second half of next year,
it said in a presentation for investors.  

 (Reporting by Anastasia Lyrchikova; Editing by Alexander Smith)