F&C: Russia gold miner Polyus should not be granted blue chip listing

F&C Investments’ head of governance Karina Litvack believes Polyus Gold, the biggest gold miner in Russia, should not be granted a FTSE 100 listing as minority shareholders would not be protected.

The firm are eyeing up a London listing next month, which will pave the way for the group floating on the FTSE 100 by the end of the year.

However, the Russian miner, is seeking a waiver of the 25% free float minimum requirement, instead proposing a free float of 13%, due to the majority of the firm being owned by two investors.

Litvack said the rules should not be broken to grant Polyus a UK premium listing as this will result in the group's minority shareholder not being protected.

In a letter to the Financial Times Litvack said the 13% stake is well below the 25% threshold required to block a special resolution that may be to the detriment of minority shareholders.

"Premium listings should be reserved for companies that are truly 'premium,'" said Litvack.

"Rather than continue to exacerbate a bad precedent, we believe the UKLA should do the right thing and stand by its 25% free-float standard for a premium listing for Polyus, as well as for other - as yet unknown - UK market aspirants."