Norilsk Nickel plans to offer $9 bln to buy back RUSAL’s 15% stake

MOSCOW, Aug 19 (PRIME) — Russian metals giant Norilsk Nickel plans to offer to buy back a 15% stake in the company from aluminum giant UC RUSAL, which currently owns 25% in Norilsk Nickel, for a total of U.S. $8.75 billion, Norilsk Nickel said in a statement Friday.

Specifically, Norilsk Nickel plans to acquire about 28.6 million shares at $306 each, which represents a 20% premium to the average weighted price of the companys shares for the last six months.

The offer is valid until September 5, pending approval by Norilsk Nickels board of directors, who are scheduled to vote on August 24.

RUSAL again reiterated that it considered the stake in Norilsk Nickel as strategic and would study the offer according to its corporate procedure.

On February 11, Norilsk Nickel sent an offer to RUSAL to buy back a 20% stake for U.S. $12.8 billion, but the offer was rejected.

Norilsk Nickels other shareholders include Interros, owned by Russian tycoon Vladimir Potanin, which holds 30% in the company, while shareholders of Russian metals holding Metalloinvest hold up to 4%.


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