Yahoo Finance Activist investor urges Russian gold miner Petropavlovsk to find deals
THE biggest investor in Russian gold miner Petropavlovsk has demanded it revive deals scrapped last year and embarks on an acquisition spree.
Kenes Rakishev, the Kazak investor who took a 22pc stake in the mining company last year, called on the board to reopen merger talks with Amur Gold, which has assets near to Petropavlovsk’s three mines in east Russia. He also urged it to reconsider talks with Renova, a vehicle controlled by Russian billionaire Viktor Vekselberg, over its gold mines in Kamchatka.
“Both these assets are very good because they’re in the same area and there’s no need to spend big,” Mr Rakishev said. “I say very openly we should look at M&A.”
He also wants the board to speed up the sale of Petropavlovsk’s 31pc stake in Hong Kong-listed iron ore producer IRC. Mr Rakishev, who previously invested in London-listed Central Asia Metals, has become increasingly vocal on the need for Petropavlovsk’s board to show “vision”, and now has a representative on the board.
A spokesman for Petropavlovsk did not respond to a request for comment.
