Putin approves Polymetal shares transaction

MOSCOW. Feb 21 (Interfax) - Russian President Vladimir Putin has authorized transactions involving shares of JSC Polymetal , the Russian structure of Polymetal.

The order was published on the official Internet portal of legal information.

On Monday, Polymetal announced it was selling its Russian business, Polymetal JSC, to the Mangazeya Plus Company, a division of Sergei Yanchukov's Mangazeya. For the transaction, Polymetal's Russian assets are valued at $3.69 billion, including $2.21 billion in net debt. Polymetal expects the deal to close by the end of March.

The presidential order also allows for transactions involving shares of Taseevskoye LLC. A year ago, Mangazeya Mining agreed with Vladislav Sviblov's Highland Gold to purchase this gold mining asset in Transbaikalia.

Polymetal is Russia's largest silver producer and one of its leading gold mining companies. The enterprises are located in the Magadan and Sverdlovsk regions, Khabarovsk Territory, Yakutia, and Chukotka. In addition to its Russian business, Polymetal owns assets in Kazakhstan. Polymetal's largest shareholder is a consortium of Omani investors led by the Omani government-owned Mercury Investments International Fund (which owns about 24%).

Mangazeya Plus is a structure created especially for the transaction by the Russian company Mangazeya Mining, part of the Sergei Yanchukov's Mangazeya Group. Mangazeya is one of Russia's top 15 Russian gold miners, with production assets located in the Trans-Baikal Territory. In addition to gold mining, the group is engaged in development, agriculture and other businesses.