Polymetal to sell Russian business for $3.7bn

Polymetal International said on Monday that it has agreed to sell its Russian business to Russian precious metals miner Mangazeya Mining for around $3.69bn.

Shareholders will vote on the deal at the company’s annual meeting in March.

Chief executive Vitaly Nesis said: "The board, the Special Committee and the management team of the group are set to deliver on our commitment to restore shareholder value and re-set Polymetal’s strategy by selling the Russian business of the group.

"A quick, transparent, and sanctions-compliant exit under the terms of the proposed transaction serves the interests of all stakeholders. The completion of the divestment will allow the group to de-risk the company’s business, deliver stable cash flows and pursue new investment opportunities. The board recommends shareholders to vote for the proposed resolution."

If approved, the sale is expected to complete at the end of March and will leave Polymetal free to focus on its operations in Kazakhstan.