The sale price is far below the net asset value of the mine before it was seized by the former Soviet republic last May
is selling the Kumtor mine to the Kyrgyz Republic for just under a billion dollars, almost a year after the former Soviet republic nationalized the asset.Kyrgyzstan previously owned a 26-per-cent equity stake in Centerra worth $972-million as of the close of trading on Friday. Centerra intends to cancel the Kyrgyz Republic’s equity stake in the firm.
Centerra subsequently launched an international arbitration suit against the Kyrgyzstani government, accusing a former director of conspiring to steal the mine. On Monday, Centerra said as part of the agreement it is dropping all of its legal actions against the government. The settlement between Centerra and Kyrgyzstan will be subject to a shareholder vote at Centerra, with a threshold of at least two-thirds of votes cast needed for it to be approved.Shares in Centerra have rebounded strongly in recent months as the company had indicated that it was nearing an agreement with Kyrgyzstan.
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