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Rusal Completed Deal for 25 Percent in Norilsk Nickel

25.04.2008

United Company Rusal has completed the deal for buying out from Mikhail Prokhorov 25 percent plus a stock in GMK Norilsk Nickel. The initial terms of the deal were changed – Prokhorov will get not 11 percent but 14 percent in Rusal plus over $7 billion in addition. Today’s plans of Rusal are to consolidate with Norilsk Nickel within a year. But the second big co-owner of the latter, Vladimir Potanin, prefers not Rusal but Metalloinvest for this purpose.

Rusal finally acquired from the firms of ONEXIM Group President Mikhail Prokhorov 25 percent plus a stock in Norilsk Nickel. The respective deal was announced yesterday and, according to the sources, this public confirmation depended on the receipt of the last payment from Rusal.

They changed initial terms of the deal clinched far back in November of 2007, said Rusal General Director Alexander Bulygin. The stake in Rusal due to Mikhail Prokhorov has widened from 11 percent to 14 percent.

Prokhorov will get more than $7 billion in addition, specified a source familiar with the deal. In the end, Basic Element of Oleg Deripaska retains roughly 56.7 percent in Rusal, Viktor Vekselberg and partners own around 18.9 percent and Swiss trader Glencore has roughly 10.3 percent.

According to the source, Rusal costs from $41 billion to $46 billion. So, the worth of 14 percent due to Prokhorov ranges from $5.74 billion to $6.44 billion, while the overall budget of the deal exceeded $13 billion.

In the next effort, Rusal intends to set to preparing the consolidation with Norilsk Nickel, which management, however, is too loyal to the second big holder, Vladimir Potanin (controls from 25 percent to 30 percent in the company). To prevent the takeover, Norilsk Nickel launched merger negotiations with Metalloinvest of Alisher Usmanov in March and the parties promised to determine the deal format by May.

Interros refused to comment on the deal of Norilsk Nickel and Rusal yesterday. But the response of Mikhail Potanin was astute. The businessman met with President Vladimir Putin Thursday, and the official purpose of that get-together was “to deliberate on foreign projects of Interros.” “I think the compromise variant of three-company consolidation was discussed at the meeting,” supposed Uralsib analyst Kirill Chuiko.


Source: Kommersant

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