Polymetal to list in London

Finance

Publishing Date: 30 Sep 2011 12:53pm GMT
Author: Mining Journal

JSC Polymetal, a Russian gold and silver miner, has officially announced its previously anticipated move to the London Stock Exchange.

The company’s shares already trade as depositary receipts on the exchange, but the company will now launch a swap deal for Russian shares into Polymetal International plc securities.

In addition will also sell new shares for a total value of US$500 million.

According to Polymetal, reasons for the move include: improved liquidity, potential inclusion in the FTSE100 index, a wider investor base, a strong acquisition currency and a strengthened balance sheet.

The company has appointed former AngloGold Ashanti Ltd chief executive, Bobby Godsell as its independent non-executive chairman.

The company also plans to launch a dividend policy with a target to distribute 20% of net income, provided its debt ratio is no more than 1.75 times earnings before interest, tax, depreciation and amortisation (EBITDA).The company intends to declare a dividend of US$0.20/share in the financial year to end-December.

Conditional dealings of Polymetal International shares are expected to commence on October 28.

The company has a market capitalisation of approximately US$6.5 billion.