What a partner Polyus Gold would be for Chavez ,they work on the same line ,they change contracts when they are no more advantageous .
Would there be a conflict of interest or will be easier to do flip flopping with Crystallex?
December 30, 2008 – 1:24 am
According to unofficial data, the company Polyus Gold intends to amend the terms of the original agreement for the acquisition of shares in equity KazakhGold Group Ltd. The decision to revise the agreement due to the sharp fall in the Kazakh company’s capitalization as of September this year, when Polyus Gold made a proposal for the purchase of the shares for shares and cash.
According to Vedomosti, with reference to anonymous informed sources, the new assessment Polyus Gold half of the previous and is $426.2 million for 100% KazakhGold. In addition, the major shareholders of KazakhGold, the family Asaubaevyh, Polyus Gold may offer cash instead of a package of shares, which will be increased to 5.9% (all of the «Pole» 6,6% Treasury securities). It is understood that the payment will go only treasury shares.
In addition, according to sources in the transaction was another condition - KazakhGold undertakes to issue additional issue of shares at $100 million under its development projects. The new shares will be located to all shareholders in proportion, but if someone abandons purchase, the paper pay Zoloto Pole. All proposals in any case so far will not binding, final offer to shareholders KazakhGold will be approved in February next year.
Recall back in September Polyus Gold was planning a proposal to purchase KazakhGold for $7.95 and 0298 of its shares for 1 share of Kazakh companies. Thus, the total proposal was estimated at $391 million for 50.1% of the shares ($14.73 per share). Meanwhile, KazakhGold capitalization over the last 3 months fell by 78%, and against this background have often appeared reports that the proposal price will be adjusted.
