Petropavlo­vsk in­vestors in reg­u­la­tory row

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

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.

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