previously hoped to float the unit in London, but pulled the plan when it became clear that the valuation would be less than expected. Severstal shareholders will have the opportunity to exchange their shares for shares in the newly spun off company, and should 5% of the new company be owned by outsiders, it will apply for a listing in London. Another of Mr. Mordashov’s firms, Rayglow will take up any shares not exchanged for. There is concern about the transaction from some quarters as many institutional investors will not be allowed to participate, and the record date for the exchange was the day before the offer was announced. A long, rambling post on Business Insider maintains that Mordashov’s manipulations, particularly as they relate to High River Gold(HRG) are allowing him to profit at shareholders’ expense. We’re unable to follow the argument well enough to make our own determination. There’s no room here for investors to profit at this point; the record date for the transaction was in the past, but if the new spin does get listed in London, it may be worth further investigation.
Related articles
- Russia’s Severstal to Spin Off Nord Gold Subsidiary, Eyes London Listing (ibtimes.com)
- A “Gold fever” after Severstals’ spin-off (rt.com)
- Nordgold eyes London listing (telegraph.co.uk)
