Petropavlovsk finds potential buyer for IRC stake
LSE-listed miner Petropavlovsk has reached a preliminary agreement with Liechtenstein-incorporated investment company Stocken Board, setting out terms on which the company would sell a 29.9% shareholding of its 31.1% holding in Hong Kong-based miner IRC.
Stocken would buy the IRC shares for $10-million, which Petropavlovsk CEO Pavel Maslovskiy said on Wednesday was a "fair and reasonable value", given that it would relinquish the company from loan guarantee on IRC's behalf.
“The guarantee has a negative impact on our credit rating, which increases the cost of our debt. We expect that the release from the guarantee would improve the company's credit profile and assist the ongoing momentum of Petropavlovsk's equity and debt re-rating."