14 Jan 2021 10:30

Paly, Rappoport firms buy sodium cyanide plant from Goldovsky for $450 mln-$500 mln

MOSCOW. Jan 14 (Interfax) - Investment companies GEM Capital and Industry Partners Corporation, controlled by respectively Anatoly Paly and Alexander Rappoport, have purchased the Korund-Tsian plant, the largest sodium cyanide producer in the CIS, from former Sibur head Yakov Goldovsky.

Otkritie Bank acted as a financial partner in the deal, GEM Capital told Interfax. The deal includes the acquisition of the company's shares and refinancing of existing loans. The total amount of provided financing exceeded $300 million. Otkritie also acted as the organizer and international document and payment escrow agent on the deal.

A source familiar with the terms of the deal told Interfax that it was worth $450 million-$500 million.

Sodium cyanide is the main reagent gold mining companies use to recover gold. Korund-Tsian, located in Dzerzhinsk, Nizhny Novgorod Region, is one of the world's top ten producers of sodium cyanide, with capacity to produce over 65,000 tonnes per year. The plant closed 2019 with a net profit of 1.85 billion rubles on revenue 6.34 billion rubles.