Abramovich to pay $1.49 bn for Norilsk stake

11th December 2012, Comments 0 comments

Billionaire Chelsea FC owner Roman Abramovich is to pay almost $1.49 billion to acquire a stake in Russian mining giant Norilsk Nickel to help end a feud between its main shareholders, they said Tuesday.

Abramovichs surprise entry into the capital of Norilsk was announced last week as a way of making peace between its main shareholders -- the worlds largest aluminium producer Rusal and investment firm Interros.

Oleg Deripaska who controls Hong Kong-listed Rusal and fellow oligarch Vladimir Potanin of Interros have for years squabbled over the company's strategy, sparking concern in the Kremlin about the future of a key Russian firm.

Analysts saw the entry by Abramovich who commenters believe retains cordial ties with President Vladimir Putin as a move encouraged by the Kremlin to create a neutral third party shareholder in the company.

Rusal and Interros said in a joint statement Tuesday that they will sell 3.87 million and 5.42 million shares respectively to Abramovichs investment vehicle Millhouse at $160 a share.

The statement said that this will give Interros 30.3 percent, Rusal 27.8 percent and Millhouse 5.87 percent stakes in the company. The volumes mean that Abramovich will pay $1.487 billion for the stake.

Abramovichs final stake is a little lower than stated in the original deal announcement when it was set at 7.3 percent.

All parties efforts will be integrated to deliver improved corporate governance and to increase the value of Norilsk Nickel in the interest of its all shareholders, the statement said.

The deal will also see Potanin become chief executive of Norilsk Nickel, the world's largest producer of nickel and palladium, replacing Vladimir Strzhalkovsky who had been named in 2008.

His appointment will be confirmed at a board of directors meeting on December 17, the statement said.


© 2012 AFP

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