Roman Abramovich to sell 40% of Highland Gold Mining

AK&M 03 August 2020 23:24

Roman Abramovich and his partners will sell a 40% stake in UK-based gold mining company Highland Gold Mining (HGM), Vedomosti informed.

The stake will be sold to Fortiana beneficially owned by Vladislav Sviblov, ex-Chairman of the Board of Directors of PIK Group, who will pay for the transaction GBP 3 per share, i.e. GBP 437 million (about $574 million) in total for the stake. HGM was valued at almost GBP 1.1 billion pounds ($1.4 billion) for the purpose of this transaction.

The company, one of the country's top 10 producers, produces gold in three Russian regions: Chukotka, Khabarovsk and Zabaykalsky Krai, as well as in Kyrgyzstan. In 2019, the company produced 300.7 koz of gold, its net profit amounting to $177.8 million, revenue reached $395.4 million.

Roman Abramovich owns 10.3% of the shares, his business partner Eugene Shvidler, Chairman of the Management Board of Millhouse investment company, owns 12.3%.