Hambro, Maslovsky might invest $15 mln each in Petropavlovsk additional issue
MOSCOW. Feb 4 (Interfax) - The founders of gold producer Petropavlovsk, Peter Hambro (board chairman) and Pavel Maslovsky (CEO) might invest $15 million each in the company during an additional issue of shares, Maslovsky told journalists.
It was previously reported that together they would buy $30 million in shares. Maslovsky said this would be split evenly between the two shareholders.
"The split will be equal. If we're able to invest all $30 million, because investing this $30 million doesn't mean using the rights that we are also getting," he said.
If all current shareholder want to participate in the additional issue to maintain their stake, Hambro and Maslovsky will also buy new shares at 157 new shares for 10 current (charter capital will be diluted by a factor of nearly 16. Hambro currently owns 3.43% of Petropavlovsk, while Maslovsky has 3.8%.
"It's a pure coincidence I would say (in any case it's definitely not deliberate; in order to maintain our current stake, we will also have to spend around $30 million. And I want to emphasize that this was what we wanted to do, but a number of serious large bondholders agreed on the deal in the event that we participate in this way and agree to do so in advance," Maslovsky said.
In refinancing convertible bonds worth $310.5 million, Petropavlovsk is going to issue new five-year bonds worth $100 million and carry out an additional issue for $235 million. Hambro and Maslovsky are going to buy $30 million in shares for cash, while bondholders will buy another $47 million. Shares worth $157.7 million will go to current bondholders as an exchange. The proportion might change if any shareholders or bondholders want to use an option to purchase in the additional issue.
The proceeds from the additional issue ($77 million is currently guaranteed) will cover $24.9 million in costs for refinancing deals, and also go towards paying current bondholders the cash portion of the conversion.
After the refinancing process is completed, Petropavlovsk will decrease the size of its board of directors. The new board will include Hambro, Maslovsky, CFO Andrei Marut, nonexecutive director Roderic Lyne, and three bondholders.
Petropavlovsk commercially develops gold deposits - the Pokrovsky mine, Pioneer, Malomir and Albyn - in the Amur region. The company cut gold production 16% in 2014 to 624,000 oz. Petropavlovsk's largest shareholders are Polygon Global Partners (5.5%), Schroders plc (5.09%), Van Eck Associates (less than 5%), Peter Hambro (3.43%) and firms controlled by Peter Maslovsky (3.8%).