Prokhorov sells stake in Russia’s leading gold company for $ 3.6 billion – RT Business News
Russian billionaire Mikhail Prokhorov quits gold trading as the price drops and becomes less attractive to international investors. He completed the sale of 37.78% of Polyus Gold International for $ 3.6 billion.
Gold is widely regarded as a safe haven against drastic fluctuations in the economy. The stabilization of the global economy has seen central banks reduce their holdings of gold, which has caused prices to fall. This week, it hit $ 1,609 an ounce, down 10% from its October high of $ 1,798.10.
Prokhorov sold 18.5% of Polyus Gold to Duma deputy Zelimhan Mutsoev’s affiliate Lizarazu Limited. Another 19.28% was sold to Receza Limited, owned by the former owner of dairy and juice maker Wimm-Bill-Dann, Gavriil Yushvaev, reports Oneksim Group.
Polyus Gold International shares rose on the London Stock Exchange on Friday following news of the sale of Mikhail Prokhorov’s 37.78% stake to affiliates of Mutsoev and Yushvaev. As of 4:00 p.m. GMT, shares of Polyus Gold had risen 5.02 percent to £ 2.30 ($ 3.50) per share.
The deal has been approved by UK regulators, who are checking whether the new buyers are affiliated with Polus Gold’s current Nafta Moskva shareholder Suleiman Kerimov.
“Prokhorov does not believe in the future of gold as the world economy stabilizes and intends to sell its assets as soon as possible”, Gazeta.ru earlier quoted BKS analyst Oleg Petropavlovsky.
The gold miner is not the first major asset that Prokhorov has put up for sale. In 2008, he sold 25 percent of Nornikel’s shares at its peak, helping it stay afloat amid the financial crisis that followed.
The businessman said he plans to focus solely on politics over the past year.
Prokhorov’s Oneksim group is also said to be in talks over the possible sale of the Quadra power generation company to Mosenergo, which is controlled by Gazprom.