UPDATE 2: Source: Bids for Onexim stake in RUSAL exceed $200 mln

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MOSCOW, Feb 13 (PRIME) -- Bids for a stake in steel producer UC RUSAL being sold by Russian billionaire Mikhail Prokhorov’s Onexim group have exceeded U.S. $200 million, a source with knowledge of the deal told PRIME on Monday.

Another source said that bids with a price lower than HK $3.7 per share can be turned down.

Dimosenco Holdings, an affiliate of Onexim group, started collecting bids for 2.5% in RUSAL at a price of $200 million earlier on Monday, a banking source told PRIME.

The offer is in the form of accelerated bookbuilding, which indicates that Onexim may increase it, the source said.

VTB Capital acts as the global coordinator and bookrunner of the deal. The bid book will be closed on Monday and settlements will be done on Tuesday. The Onexim group will be unable to sell its remaining shares in RUSAL for 90 days after the deal.

Earlier in February, media reported that Prokhorov was preparing a sale of a 5% stake in RUSAL. SUAL Partners of Viktor Vekselberg and Leonard Blavatnik were interested in buying 12% in RUSAL from Onexim, but the deal is not yet completed which might be connected with strengthening of RUSAL’s shares in recent months.

According to RUSAL’s Web site, En+ owns 48.13% in the company, Onexim Group owns 17.02%, SUAL Partners has 15.80%, Amokenga Holdings – controlled by Swiss commodity trader Glencore – has 8.75%, the company’s management owns 0.25%, and 10.05% is free-float.

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