Petropavlovsk to sell part of stake in Omchak

Petropavlovsk, a FTSE 250 mining group, has said that on Tuesday it signed a share purchase agreement for the transfer of 65 per cent of its issued shares in Omchak to Susumanzoloto in four tranches.

Petropavlovsk, a FTSE 250 mining group, has said that on Tuesday it signed a share purchase agreement for the transfer of 65 per cent of its issued shares in Omchak to Susumanzoloto in four tranches.

The total consideration for the sale is $21.65m.

The approval of the Federal Antimonopoly Service of Russia has already been obtained for the transaction. Following completion of the transaction, Petropavlovsk will remain a 25% shareholder in Omchak.

Chairman Peter Hambro said: "The group has adopted a strategy to focus on its core projects, thereby optimising its capital expenditure requirements and deleveraging its balance sheet, we are pleased to have confirmed the sale of these non-core assets."

The transaction will result in an accounting loss of approximately $30m to be recognised in the results for the year ending December 31st 2012, reversing the fair value gain of approximately $26m which arose in 2010.

The share price rose 2.08% to 339p by 08:39.

NR

Recommended

Share tips of the week - 12 August
Share tips

Share tips of the week - 12 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
12 Aug 2022
Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022

Most Popular

UK House Prices Set To Fall? It’s Not So Simple
House prices

UK House Prices Set To Fall? It’s Not So Simple

Figures suggest UK house prices are starting to slide, but we shouldn’t take these numbers at face value, explains Rupert Hargreaves.
11 Aug 2022
Three solar stocks to invest in
Renewables

Three solar stocks to invest in

This week, professional investor Nicholas Mersch of the HANetfS&P Global Clean Energy Select HANzero UCITS ETF tells us three solar stocks to invest i…
12 Aug 2022
Is gold cheap relative to equities?
Gold price

Is gold cheap relative to equities?

Dominic Frisby looks at the Dow-gold ratio and explains why gold is starting to appear inexpensive compared to equities.
12 Aug 2022