UPDATE 2-Peter Hambro moves to LSE main market

Wed Apr 22, 2009 5:22am EDT

Related Topics

* Court approves takeover of Aricom

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(Recasts, adds share price)

LONDON, April 22 (Reuters) - Peter Hambro Mining Plc (POG.L), Russia's No. 2 gold producer, moved to the London Stock Exchange's main market on Wednesday after its takeover of Aricom OREA.L received court approval.

Peter Hambro's shares moved to the FTSE 250 from AIM and the company is a contender to enter the FTSE 100, a move likely to boost the share price as index-tracking funds move into the shares.

Its shares traded at 517 pence at 0818 GMT, giving the enlarged company a market capitalisation of about 885 million pounds ($1.3 billion).

The acquisition of cash-rich iron ore company Aricom, which was spun out of Peter Hambro in 2003, will give the gold producer access to about $257 million in cash and dispel concerns about debt levels.

Peter Hambro had previously said it planned to move to the main London market once the Aricom transaction was completed.

($1=.6863 Pound)

(Reporting by Julie Crust; editing by John Stonestreet)

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