In one of largest Russian gold miners Petropavlovsk corporate conflict took place. Major shareholders of the company, including “Yuzhuralzoloto” Konstantin Strukov, did not support the recommended Board candidates to the Board of Directors, including the CEO and the founder of the company Pavel Maslovsky. The Board requests the British regulator to investigate the incident, suspecting that Mr. Strukov orchestrated the vote. The conflict comes amid rumors about the merger of Petropavlovsk and “Yuzhuralzoloto”. In the history of Petropavlovsk already had a similar dispute with the shareholder is the “Renova” Viktor Vekselberg, which also had plans for industry consolidation.Major shareholders of Petropavlovsk, including “Yuzhuralzoloto” Konstantin Strukov, not supported at the annual meeting the nomination to the Board of Directors its former members, including founder and chief Executive Pavel Maslovsky. In a statement the company said that against Mr. Maslovskogo and other recommended Board candidates also voted the Everest Alliance and Slevin (total of 12.09%) and Fortiana Holdings (4,62%). While Vladislav Sviblov through Fortiana Holdings sold most of its stake on the eve of the conflict.The Board requests the British authorities to conduct an investigation for violations of the legislation on M&A. the Vice-President “Juzhuralzolota” Alexey Ivanov told news agencies that the company operates within the legal framework and in the interests of shareholders, the negotiations which were conducted only on the strategic development of the company.Corporate conflict occurs on the background of rumors about the merger of Petropavlovsk and “Yuzhuralzoloto”. In early June, The British Daily Telegraph reported that both companies are considering to establish a joint venture. Then Pavel Maslovsky has declared to the edition that the talks are in early stages and a deal is possible. But then on the site of a gold miner was actually published a retraction. “Petropavlovsk notes the recent press speculation about a possible corporate transaction with its main shareholder, group of companies “Yuzhuralzoloto”, a private Russian gold mining company. Despite the fact that the company maintains an active dialogue with all shareholders, it currently is not involved in the discussion of transactions with SGC”,— stated in the message.”Yuzhuralzoloto” Konstantin Strukov has bought a stake in the 22,37% and convertible bonds 5.97% Petropavlovsk the co-owner of the AEON Corporation Roman Trotsenko in February of this year. Then Mr. Strukov noted that Petropavlovsk has a large growth potential, and stressed that the company owns a unique autoclave manufacturing, which enables you to learn the refractory ore deposits. Extraction of the combined company could reach 30 tonnes of gold (at the end of 2019 production “Yuzhuralzoloto” was 13.9 tonnes, Petropavlovsk produced 16 tons). Alya Samokhvalova, appointed by the CEO to the next meeting of shareholders and was Deputy Pavel Maslovsky, said “Kommersant” that the shareholders of Petropavlovsk had not expressed any claims to the company, the quotes of which over the past six months has tripled. According to her, the merger talks between Petropavlovsk and “Yuzhuralzoloto” was not conducted.In the history of Petropavlovsk is not the first joint-stock conflict. In 2017, Renova, who was at that time a shareholder of the company, and to support its funds Sothic and M&G have stated that they intend to vote against the re-election to the Board of Directors of the company’s founder Peter Hambro and three independent Directors. After the victory of candidates of “Renova” post of the CEO and Board of Directors left by Mr. Maslowski. Kommersant’s sources familiar with the situation, said that Renova wanted to control in Petropavlovsk, and then merge the company with its “Gold of Kamchatka”. Subsequently, however, the company of Viktor Vekselberg sold his stake, not presenting the strategy of development of Petropavlovsk.Eugene Zainullin