RUSAL says to sell Norilsk shares, stake to stay at 25% + share

MOSCOW, Jun 15 (PRIME) -- Russian aluminum producer UC RUSAL will participate in a buyback of shares of metals giant Norilsk Nickel, but expects its stake to remain above 25% plus one share, the company said in a statement on Tuesday.

“RUSAL … has applied to participate in the buyback of Norilsk Nickel shares. … The company will participate in the repurchase of Norilsk Nickel shares to raise additional funds to finance its own investment program. In particular, RUSAL is currently completing construction of the Taishet aluminum smelter,” the statement read.

The decrease of RUSAL’s stake will be partially compensated by cancellation of the majority of the shares bought back by Norilsk Nickel. Regardless of the outcome of the buyback, RUSAL expects its stake in the metals giant to remain above a blocking share, the company said.

In April, the core Norilsk Nickel shareholders agreed to support a buyback of up to U.S. $2 billion of shares until 2022. The board approved a buyback of up to 5,382,865 shares, or 3.4% of the issued capital, at 27,780 rubles apiece.

Interros of tycoon Vladimir Potanin holds 34.6% in Norilsk Nickel, while RUSAL owns 27.82%.

(71.6797 rubles – U.S. $1)

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