Polymetal to resume share exchange for Russian shareholders affected by sanctions on NSD

MOSCOW. Nov 23 (Interfax) - Polymetal , Russia's largest silver producer and one of the country's biggest gold miners, plans to conduct a new offer to exchange shares blocked as a result of sanctions against the National Settlement Depository (NSD) and other Russian depositories, the company said.

The offer will enable shareholders whose rights are affected by the sanctions imposed on the NSD and other Russian depositories to tender their shares for new shares issued on the Astana International Exchange (AIX) and thus regain their shareholder rights, including the ability to receive dividends.

Polymetal has already carried out two tranches of a share exchange and bought out a total of about 8% of its shares out of the approximately 22% held at the NSD. The other 14% of shares did not meet the eligibility criteria of the exchange, although they were affected by sanctions against the NSD. These shares belonged to shareholders from Russia.

Now that Polymetal has redomiciled to the Astana International Financial Center (AIFC), these shareholders can also take part in the exchange. But due to various restrictions, the offer will not extend to shareholders who are associated with "unfriendly jurisdictions" or subject to sanctions.

Under AIFC law, the manner in which the exchange offer is being conducted requires the approval of shareholders in a general meeting. The meeting to vote on this issue is scheduled for December 8.

"Similar to the First Exchange Offer, Polymetal will submit paperwork to cancel shares repurchased under the Second Exchange Offer. However, such a cancellation is contingent upon the relaxation of the restrictions on NSD and until such time that the restrictions are relaxed, these shares will be held in treasury by the Company and will not be available for re-issue," the company said.