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Investors Buying Up Polyus Zoloto Stock
Gold-mining company Polyus Zoloto stock was yesterday’s growth leader on Russian markets, gaining more than 10 percent in price even as the market was falling. Experts expect affiliates of either Mikhail Prokhorov or Vladimir Potanin to raise their share in the company to 30 percent and make an offer to minority shareholders. Those expectations moved investors to increase their own shares in the company. At one point, Polyus Zoloto shares were up 17.48 percent on MICEX. They ended the day up 10.87 percent to 1625 per share on MICEX and up 12.55 percent to $69.50 on RTS. The company’s depositary notes gained 9.46 percent on the London Stock Exchange to reach $69.40. Meanwhile, the RTS index lost 0.29 percent yesterday, and MICEX 0.49 percent.
The stock began to rise after news that a second large investor wanted to acquire treasury stock in the company. Prokhorov’s ONEKSIM Group sent an offer for 6.54 percent of the treasury stock in the company that is good through June 6. The price Prokhorov is offering was not revealed, but experts re sure that it is no lower than the Kazimir Partners fund offered Polyus Zoloto subsidiary Jenington International two weeks ago for 2.5 percent of Polyus Zoloto. Kaimir Partners offered $250 million for that stock, which is 15 percent over market price. In the five days after the Kazimir Partners offer, Polyus Zoloto stock gained 67.42 percent, then fell 27.95 percent on MICEX in one day. On the LSE, it fell by 6.72 percent.
Polyus Zoloto is one of the last assets that former partners Prokhorov and Interros owner Potanin have not divided yet. Officially, Interros owns 29.4 percent of Polyus Zoloto (including the package held by KM Invest) and Prokhorov owns 22 percent. However, since Jenington International, which owns 6.5 percent of the treasury stock in Polyus Zoloto, is in practice managed by Polyus Zoloto managers loyal to Prokhorov, the ONEKCIM share is estimated at 28.5 percent.
The volume of trading in Polyus Zoloto shares on MICEX yesterday was 2.043 rubles, almost triple the company’s average for the year. Trading hit 6 billion rubles on May 21, however. The company’s depositary notes will be split on June 10. One ADR currently represents a single stock.
www.kommersant.com
All the Article in Russian as of June 03, 2008
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