RUSAL: Work analysis needed before Norilsk shareholder deal revision

MOSCOW, Mar 24 (PRIME) -- The shareholders’ agreement between Russian metals giant Norilsk Nickel with Interros holding of tycoon Vladimir Potanin cannot be revised without analysis of management’s work, a representative of aluminum giant UC RUSAL, the other core shareholder of the metals giant, told PRIME on Wednesday.

Norilsk Nickel’s board of directors will meet on March 29 to discuss guidance for dividend payments in light of the 2030 investment strategy of the company. An Interros representative told PRIME that the holding wants to reduce the 2020 dividends and revise the company’s dividend policy before the shareholders’ agreement expiration in 2023.

“We think that revision of the shareholders’ agreement conditions cannot be considered without analysis of the results of work of the existing management of Norilsk Nickel. The managing partner has all the power in accordance with the agreement and is responsible for all operating issues,” RUSAL’s representative said.

“We see that Norilsk Nickel faced several challenges over the past year. As a Norilsk Nickel shareholder, RUSAL is interested in raising company value, which depends not only on a detailed strategy, but on the quality of operating management, and it has an impact on dividend payments.”

RUSAL has invested more than U.S. $6 billion in projects in Siberia, and a significant part of the sum came from Norilsk Nickel’s dividends, this is why the aluminum giant is interested in consistent growth of Norilsk Nickel.

“Since there is regular working dialogue between the shareholders, any negotiation position of the sides should be discussed strictly within its framework. We think that the emotional statement of one side has a negative impact on the Norilsk Nickel share price,” the representative said.

Potanin’s Interros holds 34.6% in Norilsk Nickel, and RUSAL has 27.82%.

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