Multi-industry holding Renova Group of businessman Viktor Vekselberg will endeavor to obtain control over Petropavlovsk Plc, which operates gold deposits in Russia and in which Renova holds a 22.34% share stake and a 6.88% convertible bond stake.
Renova and friendly funds Sothic Capital Management and M&G Debt Opportunities, part of Prudential, jointly holding about 40% in Petropavlovsk, require a change of the board of directors. According to the sources, if the companies win at the next, June meeting of shareholders, Zoloto Kamchatki, Renova and Petropavlovsk may merge. Moreover, some sources said that preliminary talks were being held on a possible merger of the consolidated company with Russian tycoon Roman Abramovich’s Highland Gold and GV Gold, belonging to owners of Lanta Bank, including businessman Sergei Dokuchayev.
Renova reportedly needs the deals to protect investment amid controversies with Petropavlovsk’s founders Peter Hambro and Pavel Maslovsky holding over 9% and to raise Zoloto Kamchatki’s liquidity. Renova will need support of the minority holders, as it is unable to vote, a source said. Another source added that the Kamchatka-based company might be valued at $500 million.
The completion of Petropavlovsk’s project to build a pressure oxidation chamber until 2019 may become a key factor of consolidation with Highland Gold. GV Gold may be interested in Petropavlovsk’s listing on the stock market.
The companies declined to comment. A spokesperson for Highland Gold said the information was “market speculations,” and a source close to Renova said the company “does not need any assets and it is not in talks with anyone.” (Prime/Ukrainian metal)