Roman Abramovich did not see his fortune plummet by an estimated £650million in a single day, contrary to earlier reports suggesting investors feared the Chelsea owner’s investments could be affected by the situation between Russia and Ukraine.
Abramovich has a large stake in Evraz, a mining company listed on the London Stock Exchange, and the company’s share price has recently fallen.
However, while earlier reports attributed the drop to concerns over rising tensions between Russia and Ukraine, the change in share price was attributed to the spin-off of Raspadskaya’s coal business, which was proposed in documents dated December 2021.
The Blues owner is one of the richest owners in the entire Premier League, according to the Forbes 2021 billionaires list, with a fortune north of £10billion.
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“On January 26, 2021, EVRAZ plc…announced that it was considering the strategic merits and possible structures of the potential spin-off of its metallurgical coal assets grouped under PJSC Raspadskaya”, an exit from Evraz in December read.
“EVRAZ’s Board of Directors and EVRAZ’s management have conducted a comprehensive review of the rationale and feasibility of the split and have now concluded that separating the two businesses serves the long-term interests of shareholders, EVRAZ employees, customers and other stakeholders.
“EVRAZ announces today that final terms have been entered into in relation to the Split, subject to, among other things, approval of the Split and related matters by EVRAZ shareholders.”
Monday was the first day of trading in Evraz shares “ex-right to split dividend”, according to a separate statement from Evraz dated Feb. 1, hence the drop in valuation.
Like ask traders explains: “Raspadskaya is now listed separately and has its own valuation. Evraz lost value as a result of this split. But the combined valuation of the two – and the Raspadskaya shares are distributed to Evraz shareholders – is higher than the starting point.”
Abramovich has seen his net worth rise again since the publication of Forbes’ latest billionaire list, with his fortune reported at £12.9billion at the time of writing despite the recent decline.
His stake in Evraz is just one of many investments held by the 55-year-old.
The Russian, who also holds Israeli and Portuguese citizenship, has reportedly been in talks about investing in a second football club alongside Chelsea.
sports witness reports that Abramovich is among a group interested in taking a stake in Brazilian club Vasco da Gama, with the Rio de Janeiro-based team president traveling to Europe for talks with potential investors.