Petropavlovsk heeds its shareholders

Exchange of 30.3% of the new shares of the gold mining company Petropavlovsk for Amur Zoloto of Musa Bazhaev may be delayed. Petropavlovsk removed from the agenda of the shareholders' meeting an item, which permitted the sale of new securities bypassing pre-emptive rights of existing shareholders for their redemption and of the transaction with Amur Zoloto. In June, the company's management announced its readiness to consider the merger with Zoloto Kamchatki of its largest shareholder – Renova of Viktor Vekselberg. Now the parties hold tripartite negotiations, which, according to the Kommersant’s information, are stalled.

An item, which gave the company’s Board of Directors the right to place the new shares in favor of foreign investors bypassing the pre-emptive rights of the existing shareholders to purchase these securities, has been removed from the Petropavlovsk shareholders' meeting agenda. Under the same item, according to the bulletin of the meeting, the shareholders were invited to provide the Board with a separate right of additional share issue (30.3% of the enlarged capital) for the acquisition of Musa Bazhaev’s Amur Zoloto, which was announced in April. Petropavlovsk reported to the Kommersant that the item was deleted because "it became clear that it’s not supported by the shareholders and there is no sense to put it for a vote".