12 Sep 2022 09:42

UMMC closes deal to acquire Petropavlovsk assets

MOSCOW. Sept 12 (Interfax) - UMMC-Invest has completed the acquisition of the assets of gold miner Petropavlovsk , the latter's external managers said in a statement.

Petropavlovsk has received about GBP166 million in cash, including about GBP6.2 million in administration funding and GBP3.4 million in contingency funding, as well as funds to pay holders of the company's Eurobonds, with accrued interest, in the amount of $201 million.

Petropavlovsk and UMMC-Invest on September 7 executed instruments of transfer and other corporate instruments required to transfer ownership of shares in the relevant Petropavlovsk subsidiaries to UMMC-Invest.

The deal was previously estimated to be worth about $619 million, including $380.5 million in cash, of which a portion was to go to bondholders; $203 million to pay off Petropavlovsk's debt to UMMC through a mutual offset; $29 million to fund the remuneration and expenses of the administration; and $6 million in contingency funding.

As of August, Petropavlovsk had $304 million of its $500 million in Eurobonds with maturity in 2022 still outstanding. The amount could have decreased if UMMC bought up a portion of the bonds.