On May 30, the Onexim group submitted an official proposal to Jennington International Inc. to buy 6.54% in Polyus Gold. The offer will be valid until June 6, 2008. We believe that the price proposed by the group may exceed the offer price made by the Kazimir Partners fund in mid-May, which stood at USD 73.44.
Kommersant newspaper estimates Onexim's offer at around USD 1 bn, which translates into a price of about USD 80 per share, versus the current quotations for the stock of USD 62.2 per share. In view of this, we suggest that the offer made may give an additional boost to speculative demand for Polyus Gold shares, with an upside potential of 25% to 30% to the current stock valuations.
Our target price for Polyus Gold shares is now under review.
0.569
0.073
