Russian property agency to announce auction for gold miner UGC on May 8, bidding deadline May 15, results on May 18

MOSCOW. May 7 (Interfax) - The Russian government has decided to sell 67.2% of the shares in gold miner PJSC Uzhuralzoloto Group of Companies (UGC) and other assets of the UGC Group, which have been transferred to the state following a court order, the Federal Property Management Agency's (Rosimushchestvo) press service said.

The auction is due to be announced on May 8, with bids accepted for five business days, ending on May 15, the agency said. The auction results will be announced on May 18.

The total market value of all assets has been estimated at 162.02 billion rubles, including a 67.2% stake in PJSC Uzhuralzoloto Group of Companies, valued at 140.437 billion rubles.

The bidding increment will be 2% of the floor price. Bidders must apply to bid on the Roseltorg platform and deposit of 20% of the starting price (32.404 billion rubles).

The participation of one buyer who has submitted their application and necessary paperwork as well as paid the deposit will be sufficient for the auction to be deemed valid.

In July last year, a court in Chelyabinsk satisfied the Prosecutor General's Office's claim to confiscate the stake held by Konstantin Strukov in UGC and UGC Management Company, as well as stakes in a number of companies held by several individuals associated with him, in favor of the state due to the corrupt origins of the business.