Polymetal International plc has announced plans for a Second Exchange Offer as a strategic response to the ongoing impact of EU sanctions on the National Settlement Depository (NSD), which have affected a significant portion of the company's shares. The London-listed miner, specializing in precious metals, has been working to mitigate the effects of sanctions that resulted in over 20% of its share capital being frozen earlier this year.
The disruption began in June when operations between NSD and Euroclear were hindered due to EU sanctions, leading to considerable operational challenges for the company and its shareholders. In an effort to alleviate some of these issues, Polymetal completed a re-domiciliation from Jersey to the Astana International Financial Centre (AIFC) on August 2023, followed by a First Exchange Offer which concluded on October 11, 2023. This initial exchange involved acquiring treasury-held shares and was partially successful in resolving the matter.
However, despite these measures, approximately 14% of Polymetal's shares remain under the influence of restrictions. To further address this issue, the company is targeting shareholders with Affected Shares through its Second Exchange Offer. The offer is specifically designed for participants who are not associated with Unfriendly Jurisdictions or sanctioned entities.
The process leading up to this decision involved shareholders using AIX Registrar starting to cast their votes on Tuesday for resolutions related to the upcoming General Meeting. The crucial meeting is set to take place at the Sheraton Astana Hotel on Friday, December 8, 2023. This gathering will be pivotal as it will not only sanction the Second Exchange Offer but also announce its initial outcomes.
The upcoming General Meeting in December is expected to provide clarity and potentially offer relief to affected shareholders if the Second Exchange Offer is approved. Polymetal continues to navigate through these complex sanctions-related challenges with a focus on maintaining shareholder value and operational continuity amidst an evolving geopolitical landscape.
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