PRESS: Russia’s Kerimov may spin off shares of Norilsk Nickel

MOSCOW, Jul 25 (PRIME) -- Companies affiliated with the family of Russian businessman Suleiman Kerimov may buy a 17.02% stake in aluminum producer UC RUSAL from Mikhail Prokhorov’s Onexim Group, which may allow Kerimov to spin off RUSAL’s 27.8% stake in metals giant Norilsk Nickel, Kommersant business daily reported Monday.

On July 19, Vedomosti business daily reported that companies belonging to the son of Kerimov, Said Kerimov, may buy the stake from Onexim with Onexim is looking for an investor in the asset proactively offering it to potential buyers, including the current stakeholders, Sual Partners, owning 15.6%, and Glencore, with an 8.75% interest.

Kommersant reported that Suleiman Kerimov may buy the stake in RUSAL from Onexim to spin off the shares in Norilsk Nickel owned by RUSAL. The idea was discussed in 2014 but

was not implemented because the spinoff will create additional costs, as experts say that both companies cost about U.S. $8 billion, while RUSAL costs $5.6 billion.

Norilsk Nickel and RUSAL declined to comment, while shareholders of the two companies have not discussed a return of the spinoff idea, the business daily said.

“The ownership structure of RUSAL’s shares is backed with serious tax planning, like tax exemption for a dividend that transits to the upper ownership level, this is why the shareholders will face the need to create a smart and stable structure from the point of view of taxes under a spinoff besides usual costs,” Kommersant quoted Andrei Gusev, the managing partner of Borenius law firm, as saying.

Also, a holding company that will own the shares should be established in a jurisdiction like Austria, Cyprus or the Netherlands for tax convenience, Gusev said as cited by the business daily.

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