Polyus to Sell Kazakh Gold Assets to Assaubayev for $385 Million

Polyus Gold International Ltd (PGIL), Russia’s largest gold miner, agreed to sell gold assets in Kazakhstan to the Assaubayev family for $385 million, the company said in a statement today.

Polyus acquired London-listed KazakhGold Group Ltd from the Assaubayev family in 2009 and later merged with it to obtain its U.K. domicile. Since 2010, Polyus has tried to sell KazakhGold’s assets back to the Assaubayevs to end a legal dispute with its Kazakh counterparts.

In April, Polyus terminated a previous arrangement to sell KazakhGold’s assets to the Assaubayevs for $509 million after the family failed to complete the payments. Polyus agreed to sell assets in Kazakhstan and Kyrgyzstan to Assaubayevs’ Altyn Group for $385 million after an accord in May to sell them ex- KazakhGold’s assets in Romania for $20 million.

The total consideration, including the sale of the Romanian assets, “amounts to $405 million, which we consider to be very satisfactory,” Sergey Lavrinenko, Polyus spokesman said by e- mail today. “Completion will allow us to focus on the development of our core assets in Russia, such as the world- class Natalka deposit.”

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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