Petropavlo­vsk urged to re­call ousted di­rec­tors

The Daily Telegraph - Business - - Business - By Ed Clowes

A MA­JOR in­vestor in Petropavlo­vsk is seek­ing to reap­point board mem­bers ousted from the gold miner in a coup last week.

Pros­per­ity Cap­i­tal, the Lon­don­listed firm’s sec­ond-largest share­holder with a 20pc stake, is to call a gen­eral meet­ing which would al­low back­ers to vote on putting for­mer di­rec­tors back in charge.

Seven board mem­bers, in­clud­ing Pavel Maslovskiy, the chief ex­ec­u­tive, were kicked out in a pre­vi­ous vote last Tues­day – al­legedly mas­ter­minded by ri­val Rus­sian min­ing group UGC, which re­cently took a large stake in Petropavlo­vsk.

The min­ing busi­ness stated: “The gen­eral meet­ing will en­able the share­hold­ers of the com­pany to vote on the fu­ture di­rec­tors of Petropavlo­vsk in full knowl­edge of the rel­e­vant in­for­ma­tion.”

Mr Maslovskiy ear­lier this year said that the com­pany was study­ing a po­ten­tial merger with UGC, in a deal that would cat­a­pult the pair into the up­per ech­e­lons of the gold min­ing in­dus­try.

The com­pany then backed away from this sug­ges­tion a day later.

Sep­a­rately, the gold miner is wait­ing for a de­ci­sion to be made later this week on an in­junc­tion, sought by one of Petropavlo­vsk’s share­hold­ers, that would pre­vent the com­pany from ap­point­ing an in­terim board.

If suc­cess­ful in its ap­pli­ca­tion for an in­junc­tion, Ever­est Al­liance, which owns a 7.5pc stake in the com­pany, would be per­mit­ted to ap­point four of its own nom­i­nees to the board.

Petropavlo­vsk shares yes­ter­day closed down nearly 4pc at 25.1p.

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