Petropavlovsk investors in regulatory row
A MAJOR shareholder in mining firm Petropavlovsk is to refer a fellow investor in the company to regulators amid a bitter power struggle.
Asset manager Everest is filing a complaint with the Takeover Panel against Prosperity, which owns 20pc of Petropavlovsk, for allegedly working with some members of management against the interests of other shareholders. A source said: “It very much looks as if Prosperity is gearing up for a takeover of the company on the cheap.”
The move follows a similar accusation levelled last week by Prosperity, which accused Everest of breaching Takeover Panel rules.
Prosperity said that Everest was secretly working with a number of other shareholders to gain control of the Petropavlovsk board and its management, a claim which Everest denies.
Everest also alleges that Michael Kavanagh and Vitaly Zarkhin – both put forward as independent directors – are actually linked to Prosperity.
It is launching an independent investigation into £30m which Petropavlovsk paid out in bonuses and remuneration in 2019. The company has not disclosed who the beneficiaries of those bonuses were.
Prosperity denied the allegations made by Everest.