Page 75 - RusRPTSept20

exchange their shares for Polyus shares, they will receive approximately 0.2% of the parent company. "The sum spent on the buyback of shares should not be major partly as some shareholders will choose to convert to Polyus shares and partly given the relatively small expected size of the buyback vs the company’s cash position," BCS Global Markets commented on August 18 seeing the news as neutral. Shareholders of Lenzoloto at the meeting on September 21 will consider the sale of 94.4% of Lenzoloto holding company GMC to structures of Polyus for RUB19.9bn. Polyus currently owns 83.62% of the ordinary shares of Lenzoloto. Most recently Polyus maintained its output and cost guidance for 2020 despite mining disruptions caused earlier this year due to the coronaviruis (COVID-19) pandemic.
Fortiana agreed to acquire 40.6% of HGM shares for GBP3/sh. The acquisition price is a 3% premium to Thursday’s close. The shares will be bought from various parties including Roman Abramovich and Eugene Shvidler. This stake represents 145.8mn shares. As a result of the acquisition, Fortiana is required to make the offer at a price per HGM share no less than the price per share paid to selling shareholders. The making of the offer will be subject to satisfaction or waiver of the FAS pre-condition. Under the preliminary terms of the offer, HGM shareholders will be entitled to receive GBP 3/share for each HGM share in cash. The terms of the offer represent a premium of approximately 20% to volume weighted average closing price per HGM share of GBP 2.51 for one month period ended on 30 July and 4% to the closing price of GBP 2.89/share on 30 July. The making of the offer by the publication of the offer document will take place as soon as reasonably practicable, but within 28 days following the satisfaction of the FAS pre- condition, which relates to the receipt of clearance from the Russian Federal Antimonopoly Service (FAS). The offer is expected to be completed in 4Q20.
8.4 International ratings
Russia - Rating agency
as of July 1, 2020
last change
Moodys (USD rating)
Baa3 (S)
02/08/19
Fitch (USD rating)
BBB (N)
09/08/19
S&P
BBB- (S)
23/02/18
Russia’s credit ratings have been improving and all three ratings agencies have returned Russia to “investment grade” status (BBB- or more by S&P and Fitch, Baa3 by Moody’s).
Moody’s rates Russia at Baa3 with stable outlook on both its foreign and local currency debt.
Moody’s last upgraded Russia from Ba1 (Positive) in January 2018 as the economy started to emerge from several years of recession. The lowest rating the country had was B3 in August 2008 following the collapse of the ruble that year and technical default on the GKO state treasury bills. The highest the country has scored was Baa1 in March 2013 as economy bounced back from
75 RUSSIA Country Report September 2020 www.intellinews.com