Polymetal reports change of ownership after redomiciliation to Kazakhstan

A consortium of investors from the Sultanate of Oman has purchased 23.9% of Polymetal International, a Kazakhstani producer of gold and silver, from ICT Holding by Alexander Nesis. As a result, the company no longer possesses a stake in the mining enterprise.

On January 28, 2024, Maaden International Investment (MDI), a subsidiary of Mars Development and Investment (MDI), a state company in Oman, acquired 113.2 million shares of Polymetal. No details of the contract were disclosed.

MDI is investing in various global industries, including commodity and financial businesses that meet the strategic priorities of the Sultanate. Maaden International Investment was established to assist its parent company to invest in the sector of natural resources, including metallurgy and mining. The buyer has already said that it would support the management and board of directors of Polymetal and the company’s strategy of selling its assets in Russia to protect the interests of shareholders.

«We welcome our new majority shareholders from Oman under the lead of Mars Development and Investment and looking forward to further cooperation. We are glad that the MDI has confirmed its support of Polymetal’s strategy, which includes mitigating risks by selling Russian assets and further development of its production capabilities in Kazakhstan and Central Asia as a whole,» said Polymetal CEO Vitaly Nesis.

As a result of the deal, Konstantin Yanakov, a representative of ICT Holding, has left the board of Polymetal. The company is expecting that the buyer will propose its candidate as a new member of the board soon.

Currently, Maaden International Investment is the biggest shareholder of Polymetal with a share of 23.9%. BlackRock Inc. controls 9.9%, Fodina B.V. – 3.3%, executives and the management – 0.9% and institutional and private investors – 62%.

Last week, the Association of Minority Shareholders of Kazakhstan reported an unusually high volume of trades with Polymetal shares in the Astana International Exchange (AIX). For instance, on Monday, this figure reached $1.7 million; $1.5 million on Tuesday; $1.9 million on Thursday and $1.1 million on Friday. Sometimes, the trade volume with Polymetal shares on AIX exceeded the entire trade volume on KASE. On Thursday, for example, at the peak of trade with Polymetal shares, the trade volume on AIX reached $1.8 million compared to $1.5 million on KASE.

In August 2023, Polymetal completed redomiciliation from the British island of Jersey to Kazakhstan. Polymetal’s shares have been traded on the AIX within the Astana International Financial Center (AIFC) in parallel with the Moscow Exchange. On October 2, 2023, Polymetal was included in the AIX Qazaq Index (QI). At the same time, the company has left the London Stock Exchange (LSE). Polymetal International is going to get rid of Russian assets this year due to Russia’s full-scale invasion of Ukraine.

In September 2023, Vitaly Nesis said that Polymetal would boost its stock’s liquidity to the level it had on the LSE before delisting. The company is going to complete this work within the next two years. He also said that the company will sell its Russian assets within six to nine months to split its business into two parts: Russian and international. According to Nesis, the vast majority of shareholders have already given preliminary consent for the deal.