Sale of Polyus shares sparks speculation of merger with Polymetal

The sale of Russian billionaire Mikhail Prokhorov's holding in Polyus Gold, a London-listed miner, has prompted speculation of a merger between Polyus and FTSE 100 miner Polymetal.

The sale of Russian billionaire Mikhail Prokhorov's holding in Polyus Gold, a London-listed miner, has prompted speculation of a merger between Polyus and FTSE 100 miner Polymetal.

Following approval from UK regulators, Prohorov sold his stake in Polyus for a total of $3.6bn, which marked a discount to the closing price on Thursday. Zelimkhan Mutsoyev, a big player on the Russian retail scene, purchased 18.5% of Polyus, while Gavriil Yushvayev, a fruit juice tycoon, bought the other 19.28%.

Speculators believe that the deal could lead to a merger between Polyus and Polymetal, which would result in a mining company worth $17bn.

VTB CApital analyst Nikolay Sosnovskiy said: "A merger with Polymetal is possible - it will depend on how Polyus will develop."

Back in January Polymetal denied that it was in talks with Polyus.

Polyus' share price was up 1.26% to 221.75p by 14:45, while Polymatal's shares climbed 2.7% to 971.50p.

NR

Recommended

Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022