Oligarch Kerimov set to buy out Polyus Gold

By bne IntelliNews September 3, 2015

bne IntelliNews -

 

Billionaire businessman Suleiman Kerimov, the main shareholder of Russia's largest gold miner and producer Polyus Gold, and his son Said plan to buy out 59.8% of its shares from minority holders and take over the company. Sacturino Limited, owned by Said Kerimov, will offer $2.97 per share. 

Suleiman Kerimov now holds a 40.2% stake in Polyus Gold. The company's other shareholders are Gavril Yushvaev (19.3%), Oleg Mkrtchan (18.5%), Chengdong Investment Corporation (5%) and VTB (3.7%). The free float is 13.4%.
If the offer is made and supported by all shareholders, Said Kerimov will have to spend $5.39bn on the buyout. The entire company is valued at $9bn, while its capitalisation on the London Stock Exchange (LSE) is $8.7bn. 

Such a hefty valuation could be explained by Kerimov's intention to use the deal price as an indicator in future transactions, such as the full or partial sale of the company to strategic investors, Sberbank CIB analysts said in a note.

"The liquidity of Polyus Gold shares has been low for quite some time now, and the potential buyout of the company was widely expected," the note said. Polyus Gold shares went up by 4% on the LSE during September 2 trading.

Sacturino will have to formally make the offer or announce its withdrawal by September 30. Polyus Gold's management will have to make recommendations to shareholders within one to two months after the offer is placed.

The company posted IFRS net loss of $182mn in 2014 compared with $143mn net profit reported for 2013. The loss was attributed to significant write-offs on investment and financial instruments, as well as currency losses. Adjusted net profit adjusted for non-cash write-offs increased by 9% y/y to $615mn.

Sberbank CIB estimates Polyus Gold's 2015 Ebitda at around $1bn-1.1bn. The offer may thus imply a 2015 EV/Ebitda of roughly 8.5-9, depending on the net result of both FX and gold hedging derivatives transactions, which have yet to expire and be settled, the analysts said.

Related Articles

Drum rolls in the great disappearing act of Russia's banks

Jason Corcoran in Moscow - Russian banks are disappearing at the fastest rate ever as the country's deepening recession makes it easier for the central bank to expose money laundering, dodgy lending ... more

Kremlin: No evidence in Olympic doping allegations against Russia

bne IntelliNews - The Kremlin supported by national sports authorities has brushed aside "groundless" allegations of a mass doping scam involving Russian athletes after the World Anti-Doping Agency ... more

PROFILE: Day of reckoning comes for eccentric owner of Russian bank Uralsib

Jason Corcoran in Moscow - Revelations and mysticism may have been the stock-in-trade of Nikolai Tsvetkov’s management style, but ultimately they didn’t help him to hold on to his ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss