Friday, 3rd March 2006 (2748 views)

Polyus, the gold subsidiary of Norilsk Nickel, is seeking to increase its capital by selling its stake in South African mining company Gold Fields.

Norilsk is in the process of spinning off the firm, which is looking to establish itself as an independent operation.

Polyus said it would divest itself of the 20.84 per cent stake it owns in Gold Fields, in a transaction being overseen by Goldman Sachs and Citigroup – who confirmed they had been contracted to handle the sale.

Speaking to Reuters, Gold Fields finance director Nick Holland said that the firm would still consider dealings with Norilsk despite the sale, but remained vague on exact details.

"From our perspective, [the share sale] does create true independence, a widely held gold company, which provides flexibility and further options for us," he said.

"Nonetheless, we still remain interested in pursuing a transaction regarding their operations and assets; we like the assets. If there's any way for us to still work together we would welcome it."

Norilsk has so far remained tight-lipped on the implications for its business, but the firm has been linked with a bid for platinum miner Lonmin of late, with the latest changes potentially casting new light on proposed bids.

 

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