PRESS: Prokhorov to sell 12% in Russia’s RUSAL for $700 mln

MOSCOW, Oct 27 (PRIME) -- Russian businessman Mikhail Prokhorov will sell a 12% stake in aluminum producer UC RUSAL to Sual Partners, belonging to Viktor Vekselberg and Leonard Blavatnik, for U.S. $700 million, business daily Vedomosti reported on Thursday, citing three sources close to the sides of the deal.

Vekselberg earlier told a news channel that his company wants to increase the stake in RUSAL because sees a high potential in the asset.

According to one of the sources, the deal can be closed by the end of November. The money to pay for the stake will be provided by VTB and Sberbank, but the amount of the loan has not been defined. A source close to Sberbank said that the bank earlier approved a $350 million financing to Sual Partners but Sberbank could refuse to participate in the deal.

The Prokhorov’s stake was earlier pledged with VTB under a repo deal. On Wednesday, VTB said that the amount of the stake fell to 13.16% from 17.02%.

Holding Onexim owned by Prokhorov will have time to receive $42.55 million dividends, the second dividend payment by RUSAL for almost six years.

Vedomosti reported in July that Onexim had decided to sell all its assets after searches held by authorities in April that were connected with a criminal case against the former shareholders of Bank Tavrichesky. CEO of Onexim Dmitry Razumov did not confirm the information.

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