MOSCOW, February 19. /TASS/. The Board of Directors and the special committee believe that the sale of the Russian business of mining and metals company Polymetal to Mangazeya Plus is the best condition to keep the group’s shareholder value, the company said.

"The Board considers that the Transaction presents the most viable opportunity for the Group to restore shareholder value by removing or substantially mitigating critical political, legal, financial and operational risks to the Polymetal Retained Group," it noted.

The deal announcement comes as a result of considering all the options available for the company to terminate ownership of the Russian business, initiated by the Board of Directors in connection with the start of the special military operation, Polymetal said.

"For so long as the Designation is in force and the Company has material exposure to Russia, the Polymetal Group will continue to be closely associated with a US-sanctioned entity and be exposed to continuing sanctions risk," the company noted. This prevents the appropriate valuation of the Company’s assets in Kazakhstan by the market, "while depressing liquidity and causing regulatory obstacles for shareholders," Polymetal added.

The general meeting of shareholders on the transaction approval will be held on March 7, 2024.