Isnare Press Releases
Authors Contents [Add OpenSearch]
Distribute your Press Release to more than 100,000++ active Journalists and websites...
Index  Press Release Directory  Finances
M&A Critique

M&A Critique

Like this press release? Rate it!

Most Recent Videos Most Recent Videos

Pune, India (iSnare.com) December-10-2016 -- Fosun International Ltd is in exclusive talks to buy a large minority stake in Russia's biggest gold miner Polyus, three sources with knowledge of the matter told Reuters, in what would be the Chinese group's maiden Russian deal.

Fosun, an aggressive buyer known internationally for its purchase of French resort operator Club Med, is keen to invest in Russia and other emerging markets such as India, as it moves away from Europe and developed markets. Reuters reported in August that Fosun is also in talks to buy a minority stake in Russian investment bank Renaissance Capital.

Fosun's interest in Polyus comes as other Chinese companies have also been targeting gold mine acquisitions to meet domestic demand amid a recovery in prices. State-controlled Zijin Mining Group Co Ltd and state-backed Shandong Gold Mining Co Ltd held separate talks with Canada's Barrick Gold Corp to buy a 50 percent stake in an Argentinian gold mine, Reuters reported last month.

China, the world's top consumer, producer and importer of gold, has ambitions to be a global gold price setter. It recently set up a yuan-based gold 'fix' that establishes a regional benchmark.

The talks between Fosun and Polyus have been underway for a couple of weeks, said sources, who declined to be named as the talks are confidential.

The two companies are still negotiating the final terms, including the size of the stake, and any deal value could be subject to last minute changes, one of the people said. Fosun is conducting due diligence on Polyus but no deal is imminent, the person added.

One of the sources said Fosun is looking to invest around $2 billion in Polyus, owned by the family of Russian billionaire Suleiman Kerimov. The source added that Fosun is looking to form a consortium of private equity investors to help finance the deal.

Both Fosun and Polyus declined to comment.

Both Zijin and Shandong Gold had previously expressed interest in buying a Polyus stake, one of the sources said. Zijing declined to comment while Shandong Gold did not offer an immediate comment.

GOOD TIME TO INVEST IN COMMODITIES

Based on Polyus' outstanding shares, the Russian gold miner has a market value of about $9 billion, according to Reuters calculations.

Polyus is planning a public placement with either existing or new shareholders as it needs to raise its free float to at least 10 percent to meet Moscow Exchange requirements, Reuters reported last month.

Fosun's interest in Polyus comes as the Shanghai-based conglomerate, controlled by billionaire co-founder Guo Guangchang, is shifting its investment focus to emerging markets where asset valuations are lower and growth prospects are higher.

Fosun this year acquired India's Gland Pharma from KKR & Co for about $1.3 billion, marking its first Indian acquisition. The company has spent more than $30 billion over the past two decades buying real estate, insurance, leisure and tourism assets globally.

Guo, 49, one of China's most powerful business leaders, told Reuters in June that he considered 2016 a "good time" to invest in oil and commodities, adding that Fosun would increase investment in this segment.

Born in a rural village in the eastern province of Zhejiang, Guo studied philosophy at Shanghai's elite Fudan University and serves as a delegate to the National Committee of the Chinese People's Political Consultative Conference, a parliamentary advisory body.

Fosun first diversified into natural resources in 2014 when it bought Australia's Roc Oil Co for A$474 million, although Guo said the investment wasn't a success due to plunging oil prices.

In Russia, Fosun has already set up two subsidiaries - Fosun Management (Russia) and Fosun Eurasia Capital - to seek investment opportunities and build its asset management business in the country and neighboring regions, its website shows.

Moscow-based Polyus has posted a steady rise in gold output over the last few years and expects to produce up to 1.90 million ounces of gold this year. It also has the world's fourth-largest gold reserves, according to the company, with over 64 million ounces of proven and probable gold reserves.

A weakened rouble has lowered the costs of gold mining in Russia in dollar terms, helping Polyus to post a record first-half core profit margin. Net debt, however, jumped during 2016 due to a share buyback and stood at $2.9 billion at the end of September.

Company: M&A Critique

Contact: M&A Critique

Phone: 020-24420209

Most Recent Press Releases

Symheealth 2017 Healthcare Conferecnces

Press Release by Symhealth 2017 in Education

1 week ago

There is no denying of the fact that healthcare is one of the defining cores of every expanding economy. Every single step that we take in direction of wholesome development and growth remains incomplete unless health care issues are addressed in it. It is high time that every small and big issue relevant to this topic is discussed thoroughly and attended with utmost sincerity which means we need to channelize our knowledge banks and get as much information as possible by getting associated with best in this and all related sectors...

New Illustra IP Camera Analytics Strengthen Accuracy and Improve Operator Efficiency

Press Release by Tyco Security Products in Computers and Technology

1 week ago

WESTFORD, MA. August 19, 2016 –– Tyco Security Products introduces video intelligence analytics at the edge for Illustra IP cameras to improve security operations and reduce response time. Illustra now offers its IP camera customers powerful video intelligence analytics to automatically analyze captured video and alert users of specific motion detected activities...

Why UI Development Training is Very Important Now a Days

Press Release by Infocampus in Education

1 week ago

Why UI Development: A front-end engineer (or for sure UI designer) truly relies on upon the advances being utilized. . Contingent upon the innovation utilized (e. g. website pages versus customer programs) this may somewhat change and potentially incorporate informing amongst backend and frontend too or exclude parts of the frontend by any means...

Kid’s Fashion Has Gotta Something Different!

Press Release by Nilesh Noddy in Fashion

2 weeks ago

With the motto ‘A Passion for Fashion', Ishan Apparel is a leading manufacturer of boys' branded casual wear in India since 1991 under the brand ‘NODDY'. The brand has a Pan-India presence & is a well-organized name with the consumers across all the socio-economical class. Today not only the adults but even the kids want to follow the latest fashion trends...

Biggest Platform For Interior Design and Architecture Professionals

Press Release by Acnhit Agrawal in Real Estate

2 weeks ago

Lifestyles have changed and most families today do not settle down for a home with a few decorated items that could pass off as being ‘designed'. They prefer homes that exude artistic appeal and compel visitors to take a second glance. Designers and their services have hence been steadily rising in demand...

Norton Setup Help

Press Release by Carl Marx in Computers and Technology

2 weeks ago

Virus is the worst thing that may happen to your ADP system. It bears on the basic equilibrium of system performance. It alters file permissions, reduces storage capacity and will increase the security threats. Norton Antivirus has the ability to stay such dangerous software aloof from your system. However the method of installation of Norton antivirus is also tough for you...

Best Media School in Kolkata, Five Reasons Why

Press Release by Asha Bharech in Education

2 weeks ago

iLEAD, the best media school in Kolkata has a well equipped production and post production studio, a magnificent book store with more than 40,000 titles, outstanding computer laboratory with every possible facilities and a stunning campus suitable for students in every sense. Few indicators helped iLEAD to reach the top level...

Illinois College Awarded $60,000 Grant by Campus Consortium to Improve Security and Single Sign-On

Press Release by Rmills in Education

1 month ago

Illinois, January 18, 2017:– Illinois College, a private, independent liberal arts college located in Illinois, Illinois that has been uniquely empowering students to realize their full potential for over 150 years, announced today that it is a recipient of a $60,000 Grant from Campus Consortium for security and single sign-on...

Campus Consortium Joins EDUCAUSE Partner Program

Press Release by Rmills in Education

1 month ago

Cleveland, OHIO January 18, 2017:– Campus Consortium, the largest global education association of schools, colleges and universities, today announced their Partnership with EDUCAUSE as a Bronze Partner. EDUCAUSE is higher education's largest technology association. "We are pleased to partner with EDUCAUSE...

EPDM Market Worth 7.2 Billion USD by 2020

Press Release by Mohan Mhaske in Business

1 month ago

The report “EPDM (Ethylene Propylene Diene Monomer) Market by Application (Automotive, Building & construction, Tires and Tubes, Wires & Cables, and Lubricant Additives,) and Regional analysis - Trends & Forecast to 2020” , This report defines and segments the EPDM market with analysis and forecast of the market size...