China refuses to buy Russia's Polyus

China refuses to buy Russia's Polyus

Russia's top gold miner Polyus said that plans to sell a 10% stake to a consortium led by China's Fosun International had been dropped after one of the conditions of the agreement was not met.

"After the condition precedent was not satisfied, the parties discussed further options but did not reach a consensus, following which Polyus Gold International Limited proposed to terminate the agreement," Polyus said in the statement.

"The parties agreed to terminate the agreement, including the option for the consortium to acquire an additional 5 percent of the company's share capital pursuant to the agreement," the company added.

Polyus declined further comment on the termination of the deal, Reuters reported.

The Fosun-led consortium had been in talks since 2016 to buy a large minority stake in Polyus, which is controlled by the family of Russian tycoon Suleiman Kerimov. Kerimov was arrested as part of a tax evasion case in France late last year.

The deal for the Fosun-led consortium to buy 12,561,868 ordinary shares was signed in May 2017 and later delayed until February this year.

The Chinese deal had valued Polyus at $70.6 per share, which was equal to the upper end of the price range for its share offer.

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