Rostec sold 49% of shares in Erdenet

Equity transaction is already listed to Rostec.

The deal was achieved on mutually beneficial market conditions for both the Russian and Mongolian sides. For the purpose of the deal, the cost of the 49% packet of shares was valued at a market premium, taking into account the quality of the assets and their potential for development. The terms of the agreement were independently assessed by international auditors and consultants.

At the state level, the decision to sell the Russian shareholdings in Erdenet and Mongolrostsvetmet to the Mongolian side, Mongolian Copper Corporation, obtained the relevant approval of the Russian and Mongolian governments, and on the corporate side, of Rostec’s Management Board and Supervisory Committee. The deal will have an extremely positive effect on the development of economic cooperation between Russia and Mongolia, and will give an additional impetus to the strengthening of the countries’ political ties.

For Rostec, the decision to monetise 49% of its shares in its Russian-Mongolian joint-venture mining companies (Erdenet and Mongolrostsvetmet) was taken after conducting a range of measures to increase their equity value, and also with consideration for Rostec’s need for financial resources to implement a number of projects as part of the corporation’s development strategy up to 2025.