Kazakhstan disputes sale of KazakhGold to Russian firm

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ASTANA -- The Kazakhstani government is fighting Russian Polyus Zoloto’s efforts to merge with mining corporation KazakhGold in a "reverse takeover", media reported July 12 citing the Kazakhstani Ministry of Industry and New Technologies.

The government has barred further issuance of KazakhGold shares. It also annulled its approval of a 2009 share purchase by Polyus Zoloto, saying the Russian corporation paid too little.

Polyus Zoloto acquired 50.1% of KazakhGold in 2009 and wishes to turn itself from parent into subsidiary in a "reverse takeover". The merged company would have a single London Stock Exchange listing and be the largest gold miner in the former USSR.