Polyus Zoloto prepares share buyback of $2.5 billion

As the Kommersant has got to know, Polyus Zoloto of Suleiman Kerimov may conduct buyback of up to $ 2.5 billion by buying 30% of its shares. Only 4.7% of the company’s shares are in free float and the buyback will partially help the main shareholder to pay off the loans, obtained for the original purchase of shares of the parent company Polyus Gold and its consolidation in 2015. In fact, the transfer of $2.5 billion of the debt from the shareholder to Polyus Zoloto will seriously increase its debt load, but the company has made all of the major investments.

The Polyus Zoloto Group, controlled by structures of the family of the Dagestan senator Suleiman Kerimov, has attracted Sberbank loan for $2.5 billion, sources, familiar with the negotiations of the parties, reported to the Kommersant. According to them, the loan is granted for a period of more than five years, the recipient may be not only parent Polyus Zoloto, but also its subsidiaries. The Kommersant’s sources claim that these funds can be directed to the buyback of company’s shares and the buyback can take place in the first quarter.