Gold miner drops plan to move to London

Currently domiciled in Jersey, Polyus had planned to make the move to London and increase its free float from the current 14 to 25 per cent through a sale of shares, including treasury shares, which could have raised up to $800m.

But a spokesman said yesterday Polyus Gold had withdrawn its request for government permission to relocate.

“The rest of the company’s plans have not changed,” said a source familiar with the company’s strategy to raise its profile on the London stock market.

One financial industry source said Polyus could still raise money, increase its free float and gain a premium London listing even without the commission approval. However, it could not get inclusion in the FTSE 100 or other UK indexes without changing its domicile to the UK.

Polyus was still considering selling the treasury shares, the financial source said.

Prime Minister and President-elect Vladimir Putin chairs a government commission that has sweeping authority over foreign investment in companies like Polyus Gold, whose gold reserves are considered strategic by the state.

The commission initially failed to approve a request by Polyus to seek a premium listing at a meeting in October, a decision linked by some analysts to Prokhorov’s failed first attempt to enter national politics as leader of the Right Cause party.