Bank of Russia Protects YUGK Minority Shareholders as Potential Buyers Circle Controlling Stake
State-owned gold mining company YUGK is in the spotlight as potential buyers, including entities linked to the Ural Mining and Metallurgical Company (UMMC), eye its controlling stake. Meanwhile, the Bank of Russia has stepped in to ensure minority shareholders' rights are protected.
The Bank of Russia has been keeping a close watch as any party seeking more than 30% of YUGK's shares must comply with norms requiring an offer to buy out other minority shareholders. However, Rosimuschestvo, the state agency overseeing YUGK, missed the 35-day deadline to place a tender offer, a violation of the law.
In response, the Bank of Russia has issued instructions for Rosimuschestvo to buy out minority shareholders' shares in YUGK. While potential negotiation partners for acquiring the controlling stake in YUGK have been mentioned, their identities remain unspecified. The news of these developments caused YUGK shares to rise by nearly 5% during evening trading.
The Bank of Russia's intervention aims to safeguard minority shareholders' interests as YUGK's controlling stake draws potential buyers. The increase in YUGK shares reflects market confidence in the regulatory process and the potential change in ownership.
