Russian minority shareholders of the British Petropavlovsk PLC have initiated legal proceedings against UMMC, the buyer of the company’s gold mining assets. In 2024, investors asked UMMC to buy out their shares, stating that they suffered during the transaction, but apparently received no response.
Minority shareholders of the British Petropavlovsk PLC filed a lawsuit against the Ural Mining and Metallurgical Company (UMMC), the Moscow Exchange, and Gazprombank. The application has been accepted for proceedings, and a preliminary hearing is scheduled for October 28.
Managing partner in Russia at Nordic Star Law Offices Anna Zabrotskaya assesses the prospects of the lawsuit as “extremely low”.
Petropavlovsk PLC, as a company registered in the UK, is not subject to the provisions of Russian legislation on the forced buyout of shares, and UMMC acquired assets, not the issuing company, which had obligations to investors. When considering the claim, the court will most likely recognize UMMC as an improper defendant.
Read more in the Kommersant article.