3 Jun 2020 11:13

Russian regulator approves Chinese bid to buy GV Gold

MOSCOW. June 3 (Interfax) - The Federal Antimonopoly Service (FAS) has approved an application filed by a company called Maisky List to acquire 100% of shares in GV Gold, one of Russia's ten largest gold miners, the regulator said.

Data in the SPARK-Interfax system show that Maisky List is owned by two Hong Kong companies and its CEO is Igor Danilenko, the former managing director of Fosun Eurasia Capital, a Russian subsidiary of China's Fosun.

Last June, Bloomberg, citing sources, reported that a consortium of Chinese investors led by Fosun was interested in buying a controlling stake in GV Gold, and that the latter could be valued at $1 billion for the deal. But the deal never took place, and Interfax sources said the parties could not agree on the price. The current status of negotiations is unknown.

The companies of Roman Trotsenko and Kenes Rakishev were also interested in buying GV Gold, but both businessmen have said that negotiations were halted.

GV Gold's largest shareholders are Lanta Bank CEO Sergei Dokuchayev, Lanta Bank deputy CEO Natalya Opaleva and the head of their company CJSC LT-Resource, Valerian Tikhonov. They each control 20.36% of shares in the miner. Blackrock funds hold 17.99%; Vladimir Strazding holds 6.37% through Cyprus-based Brishurt Ltd; treasury stock amounts to 8.21%; and 6.35% is owned by smaller shareholders.

GV Gold operates in Irkutsk Region and Yakutia, where it has production assets and exploration projects.