Petropavlovsk urges FCA to investigate two rebel investors

PETROPAVLOVSK has called on the Financial Conduct Authority (FCA) to look into the identity of two investors who are seeking to oust the board of the Russian gold miner at its meeting on June 29.

Ian Ashby, the chairman, has written to the FCA calling for its intervention in the heated battle for control of the company.

Mr Ashby said that letters from CABS Platform and Slevin, who together own 9.1pc of the company, merely revealed a “cascade of shell companies and offshore trusts” that cast “a veil of secrecy over their intentions”.

Petropavlovsk has complained that the activist investors have not made clear if they have any relevant experience in gold mining or how they funded their £20m purchase of shares.

CABS and Slevin have proposed reinstating Pavel Maslovskiy, the company’s former boss and co-founder, along with two other ex-directors. Dr Maslovskiy said: “I am delighted that Mr Ashby has referred this matter to the Financial Conduct Authority because that means that shareholders will have an independent third party who is able to judge who is telling the truth and will not have to rely on the opinion of the directors, which, given Mr Ashby’s previous utterances, is likely to be biased.”

The rebel shareholders have the support of Kenes Rakishev, Petropavlovsk’s biggest investor, with a 22pc stake. The miner’s second biggest investor, Sothic Capital, has backed the board. Both sides claim to have similar plans for the company, focused on completing a multimillion-pound processing plant, but differ over who should lead the business. The FCA declined to comment.