Polyus Board Approves KazakhGold Buy

Onexim Group, a major shareholder in Polyus Gold, said Tuesday that the miner's board approved the acquisition of a controlling stake in Kazakhstan's largest gold miner, KazakhGold, and that billionaire Suleiman Kerimov would bid for a stake in Polyus.

Onexim, owned by billionaire Mikhail Prokhorov, said Polyus' board voted unanimously for the Kazakh acquisition, of which 70 percent will be paid with shares and 30 percent by cash.

Prokhorov, also chairman of Polyus, said on Tuesday that Kerimov might buy a stake in the company. He will bid for the 35 percent held by billionaire Vladimir Potanin and would be a "comfortable partner," Prokhorov said.

The Polyus board also voted against a buyback of its shares, stating that they have recently risen by more than 40 percent.

On Monday, KazakhGold said it had received a possible cash and shares offer from Polyus to buy 50.1 percent of the company. (Reuters, Bloomberg)