Russia's largest silver producer and one of the leading gold miners set up a special committee of the board of directors to discuss the possible deal. The chairman of the committee, Paul Ostling, commented:
"The special committee is acting in the interests of all shareholders. Our ultimate goal is to restore shareholder value by separating the Russian segment of the business."
Shareholders, including billionaire Alexander Nesis and his partners, who own 24% of the company shares, haven’t been targeted by international penalties as of yet. However, sanctions on Russia are weighing on every company with assets in the country.
The company believes that the deal will increase the likelihood of Polymetal's return to all applicable stock indexes and restore a broad base of institutional investors.
Reuters reported that, after the announcement on Tuesday, Polymetal's London-listed shares went up by 35%.
Polymetal had previously stated that it was considering splitting its asset ownership structure by jurisdiction, each with its own listing. Its Russian business accounts for about 70% of its sales, with the rest coming from Kazakhstan.
Kazakhstan accounts for approximately 1/3 of Polymetal's production: the forecast for 2022 is 1.2 million ounces of gold equivalent in Russia and 0.5 million ounces in Kazakhstan.