The battle for control of Petropavlovsk (POG) is not over. A year on from a boardroom coup, two new investors are agitating for the removal of the current directors of the Russian gold miner, and the re-installation of former directors including founder and one-time chief executive Pavel Maslovskiy.
Earlier this month, soon after acquiring two separate stakes of 4.55 per cent, shareholders CABS Platform and Slevin – registered in Gibraltar and Anguila, respectively – wrote to the gold miner to propose the removal of Petropavlovsk’s existing directors at next month’s annual general meeting. In their place, CABS and Slevin want to reappoint Dr Maslovskiy and former directors Sir Roderic Lyne and Robert Jenkins.
Although the activists’ holding is large enough to force a vote, success will likely require the backing of Kazakh oligarch Kenges Rakishev, who became the largest investor in the company at the end of last year when he acquired a stake owned by Viktor Vekselberg’s Renova Holdings.
Mr Rakishev, who has also called for the return of Dr Maslovskiy, said the requisition had “come as a surprise”, but declined to comment on his voting intentions in relation to the proposals. It seems unlikely, however, that he would vote for the removal of non-executive director Bektas Mukazhanov, having urged for his appointment in January.
Now, with Renova out of the frame, and after M&G sold down its 6.86 per cent stake last week, the coalition that backed last year’s personnel changes looks decidedly weaker. Potentially, that elevates Mr Rakishev to the status of kingmaker.
Whether that paves the way for the return of Peter Hambro seems a long shot. We are told the former chairman and Mr Rakishev are not associated in any way. But while he declined to comment on the recent machinations, Mr Hambro told the Investors Chronicle he had not interacted with management since his ousting by a similar requisition order last June, but does remain in contact with Mr Maslovskiy, Sir Roderic and Mr Jenkins.
“I believe that the value of this company is many times its current share price,” said the banking scion, who is still a small shareholder in the group he co-founded. “Remember that I have been in the business of mining and mining finance for nearly 40 years, and I see a degree of optionality here that is totally overlooked.”
