29 Oct 2010 14:09

Polymetal seeking full LSE listing via new company - paper

MOSCOW. Oct 29 (Interfax) - Silver and gold miner OJSC Polymetal plans to obtain a full London listing via a new parent company, domiciled in London, which will carry out a $1-billion IPO, the Kommersant newspaper said, quoting unidentified sources.

The paper said OJSC Polymetal had already registered two companies - London-based Polymetal International and PMTL Holding in Cyprus, which is owned by the former. In the initial stage of the transaction, Polymetal's core shareholders will transfer shares to PMTL, and receive shares in Polymetal International on a pro rata basis. Polymetal International will then hold the $1-billion IPO on the LSE and on Russian exchanges in the form of depositary receipts.

OJSC Polymetal's shareholders are PPF Group (19.6%), ICT Group (18.9%), Alexander Mamut (15%) and Polymetal Management Company (around 7.8%). The free float is 34.3%. A compulsory offer will be made to minority shareholders to sell shares in PMTL for cash or for shares in Polymetal International.

PMTL will own 57.9% of OJSC Polymetal once the transaction has been closed.

Kommersant said OJSC Polymetal would soon be asking the Russian Federal Antimonopoly Service for clearance for the deal and to allow it to close within a two-week period.

Polymetal started to look closely at the options for tapping the international markets in September, with several scenarios including an SPO, combination or reverse takeover with a publicly listed company under consideration.