Investment group Baker Steel Resources Trust Ltd (LON:BSRT), which earlier this year became fully invested, is waiting to cash out of Polymetal and put money into alternative opportunities.
Lock-up agreements prevent Baker Steel from selling the majority Polymetal shares until October.
“Polymetal is a cash generative mid-size producer with a good growth profile and progressive dividend policy but does not fit into the strategy of the company,” Baker Steel Resources said in Friday’s interim results statement.
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“The company will therefore utilise the high liquidity of Polymetal's shares to provide funds when the company has a strong investment proposition more in line with its strategy.”
Looking ahead to new investments, the company added that it would seek to invest, via convertible instruments, into projects where it can have a significant interest and be able to proactively influence policy.
Baker Steel also highlighted its existing policy to distribute at least 15% of aggregate realised cash gains.
The shareholding in Polymetal represents 29.8% of all the investment group’s holdings.
Baker Steel reported that its net asset value had reduced by 0.5% in the first six months of 2018, at 57.1p per share.