Polar Company sued the original owner of Kazakh Gold Company for $450 million.
Some of Kazakhstan's most valuable gold mines have been the object of a painful $ 450m deal. 87 million pounds) the high court battle between Russia's second richest oligarch and a powerful local family. The case revolves around the Kazakhstan Gold Company with assets of $500 million. This may be a worrying story for investors who hold their international stocks (that is, global depositary receipts).
Russia's second richest oligarch and a powerful local family in Kazakhstan have a $450 million high court judicial confrontation involving some of Kazakhstan's most valuable gold resources; The protagonist of the case is the' Kazakh Gold Company' worth 500 million US dollars. This incident may shock investors who hold global depositary receipts (GDR).
The dispute began last year, when the founder of Kazakhstan Gold Company sold 50. 1% of the company's shares. Polyus, the Russian gold giant, whose chairman is Mikhail Prokhorov, a metal tycoon, bought these shares for $254 million. According to the lawsuit filed by Jenington International and KazakhGold, subsidiaries of Polyus, in London, the Russians now claim that they were cheated on this transaction.
Last year, the founder of Kazakh Gold Company, a prominent family named Asabayev, sold 50. 1% of the company's equity to Russian gold giant Polar Gold Company, valued at $654.38+00 billion. Its chairman is ProHohloff, who bought these shares for $254 million. According to the lawsuit statement initiated by Jennington International, a subsidiary of Polar Gold Company and Kazakh Gold Company in London, the Russians believe that they were cheated in this transaction.
In the court documents seen by the Daily Telegraph, the plaintiff claimed that the former owner of KazakhGold greatly exaggerated the gold production from 2006 to 2008 and arranged the transfer of funds through false contracts from 2007 to 2009. Polyus argued that he was misled and demanded compensation of $450 million. Mr. and Mrs. Asabayev are now subject to an asset freeze order by the court. They strongly deny these allegations and intend to question them.
According to the court documents reviewed by the Daily Telegraph, the claimant claimed that the former owner of Kazakh Gold Company falsely increased gold production from 2006 to 2008 and transferred funds through false contracts from 2007 to 2009. Polar Gold Company argued that they were misled and demanded compensation of $450 million. The assets of the "Asabayev" family have been frozen by the court, but they deny the accusation and are ready to plead.
Bloomberg said that the war over Kazakh gold may have a wider impact on its shareholders, including large institutional investors such as JP Morgan Chase, BlackRock and Charlemagne. Earlier this year, KazakhGold announced an ambitious plan worth $10 billion to build the largest gold miner on the London Stock Exchange. The deal was supported by companies in prokhorov.
According to Bloomberg News, this dispute may have a far-reaching impact on shareholders of Kazakh Gold Company, including large institutional investors JPMorgan Chase, BlackRock and Charlemagne. Earlier this year, Kazakh Gold Company announced an ambitious plan of $654.38+00 billion to set up the largest gold mining company on the London Stock Exchange, and companies in Hohloff also supported this transaction.
It will take the form of reverse acquisition, and 500 million dollars of Kazakhstan gold will absorb10 billion dollars of Kazakhstan rubles. The expanded company will be renamed Polyus International, and may apply to join the FTSE 100 index. The transaction will effectively use KazakhGold as a tool to ensure the listing of Russian gold giants in London.
This plan was carried out in the form of reverse acquisition, and the' Kazakh Gold Company' of 500 million US dollars annexed the' Polar Gold Company' of 65.438+0 billion US dollars. Subsequently, the expansion company changed its name to' Polar International' and applied to enter the London Financial Times Index 100. Through this transaction, Russian gold giants will effectively use the' Kazakh Gold Company' to list in London.
However, the proposal approved by shareholders last week ran into problems shortly after the lawsuit against the Asabayev family was filed. Bondholders were given another month to consider the proposal after the Kazakhstan authorities suddenly revoked the permission of Russians to hold 50% shares in the company. The country's financial police have now started a preliminary investigation on the purchase price, although a spokesman for KazakhGold said that it has not received a formal notice of investigation.
However, since the' Asabayev' family was accused, this issue, which has been passed by shareholders, has been in trouble. After the Kazakh authorities suddenly revoked the 50% equity of Kazakh Gold Company, which had been approved by the Russians, corporate bondholders were given another month to consider. Kazakhstan's financial police have now launched a preliminary investigation into the purchase price, although a spokesman for Kazakhstan Gold Company said that they were not informed of the investigation.
Opposition from Kazakhstan will derail this10 billion acquisition. The Asabayev family still holds a minority stake, accusing the company of failing to provide the latest development to the market. In particular, the family said that the new management did not disclose the serious consequences that the actions taken by the Kazakh authorities might have on their business operations, especially their permission to exploit underground assets?
Kazakhstan's opposition will prevent the acquisition of $654.38+000 billion. The Asabayev family, which also owns a minority stake, accused the company of not providing the latest development information to the market; In particular, the newly appointed management did not explain to shareholders the possible serious consequences of the actions taken by the Kazakh authorities on the company's business, especially the permission to develop soil-based assets.
Kanat Assaubayev, founder and former CEO of KazakhGold, said: It is very disappointing that the company continues to avoid solving key problems for shareholders and their potential impact on the company's value. ? Mr Assaubayev bought a gold mine from the government of Kazakhstan in 1999 and developed his company into a large mining company. However, it ran into trouble in 2009, and submitted its accounts on the London Stock Exchange late. The family refused to comment on the lawsuit.
Kana Asabayev, founder and former CEO of Kazakh Gold Company, said, "I am very disappointed that Kazakh Gold Company has always avoided facing the key issues of shareholders and the possible impact on the company's value." Mr Kana bought a gold mine from the government of Kazakhstan in 1999 and developed it into a large company. However, due to the delay in submitting financial reports to the London Stock Exchange in 2009, it was caught in a quagmire. The "Asabayev" family did not comment on the lawsuit.
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