Central Bank of Russia orders Rosimushchestvo to make offer to UGC minority shareholders

MOSCOW. Oct 9 (Interfax) - The Central Bank of Russia has ordered the Federal Property Agency (Rosimushchestvo), as the new owner of a controlling stake in PJSC Uzhuralzoloto Group of Companies , to make an offer to the company's minority shareholders.

"The Central Bank has sent an order to Rosimushchestvo because the 35-day period during which they were required to place a buyout offer had already expired. Under current legislation, when acquiring a large stake exceeding 30% of shares, the shareholder is obliged to offer minority shareholders to buy back their securities," the Central Bank's press service told Interfax.

"The Central Bank, in accordance with its authority, monitors compliance with these corporate norms," the CBR said.

Reuters previously reported, citing sources, that the Moscow Exchange had complained to the Central Bank about a violation of the law by Rosimushchestvo as the new owner of the controlling stake in UGC due to the absence of an offer to minority shareholders, and that the regulator had initiated administrative proceedings.

On July 11, the Sovetsky District Court of Chelyabinsk satisfied the claim of the Prosecutor General's Office to turn over the stake in UGC belonging to businessman Konstantin Strukov (67.85% according to the latest open data) and its management company (100%) to state revenue. A 67.25% stake in UGC has been owned by the Russian state represented by Rosimushchestvo since July 15, according to the company's accounting statements.

Uzhuralzoloto is one of the largest gold mining companies in Russia. It operates through two hubs, the Urals hub in the Chelyabinsk region and the Siberian hub in Krasnoyarsk Territory and Khakassia. The company estimates its free-float at 10.8%, while AAA Capital Management of Gazprombank holds 22% of the shares.